NOTE

LEASES

We conduct our operations in a leased facility under a non-cancellable lease through

December 31, 2020.

Our lease does

not

provide an implicit rate, so we used our incremental borrowing rate to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Variable lease costs consist primarily of common area maintenance and real estate taxes which are paid based on actual costs incurred by the lessor.

Details of our operating lease are as follows:

	Quarter Ended June 30, 2019
Operating lease cost	$	38,641
Variable lease cost		30,227
Total	$	68,868

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for leases	$	43,365
Remaining lease term (in years)	1.5
Discount rate		3.5	%

The following table presents the maturities of lease liabilities as of

June

30,

2019:

Year Ending March 31	Operating Leases
2020	$	131,163
2021		133,299
Total lease payments		264,462
Imputed lease interest		(6,474	)
Total lease liabilities	$	257,988