NOTE 5 – LEASE

In May 2019, the Company signed a sublease agreement with a related party for office space in La Jolla, California, which serves as the new headquarters of the Company. The lease has a 61-month term, which corresponds to the lease term of the lessor. The lessor is CTI Clinical Trial & Consulting Services (“CTI”). CTI is majority-owned by a member of the Company’s Board of Directors. The lessor may extend its lease for an additional 5 years, and, if it does, the Company may also extend its sublease for 5 years. The Company did not include the option to extend in the calculation of the lease liabilities as such extension is not reasonably certain to occur. Variable lease costs for the Company’s lease consists of operating expenses for the spaces. Below is a summary of the Company’s right-of-use assets and liabilities as of June 30, 2019:

Right-of-use asset – related party	$	209,234

Operating lease, current liability – related party	$	7,530
Long-term operating lease liability – related party		177,051
Total lease liability	$	184,581

Weighted-average remaining lease term	5.1 years

Weighted-average discount rate		10.00	%

During the six months ended June 30, 2019, the Company recognized $3,495 in operating lease expense, which is included in general and administrative expenses in the Company’s consolidated statement of operations. During June 2019, the Company prepaid its rent obligation pursuant to its lease with CTI for the remainder of 2019.

Approximate future minimum lease payments for the Company’s right-of-use assets over the remaining lease period as of June 30, 2019 are as follows:

Remainder of 2019	$	-
2020		50,045
2021		51,546
2022		53,092
2023		54,685
2024		32,508
Total minimum lease payments		241,876
Less: amount representing interest		(57,295	)
Total lease liability	$	184,581