Note 7 – Right-of-Use Assets and Liabilities

The Company leases its facility in Irvine, California under an operating lease which it amended in November 2021 to extend the lease term an additional 60 months through September 30, 2027. The lease rate at the date of the amendment was approximately $30,000 per month with escalating payments adjusting annually. In connection with the lease, the Company is obligated to pay approximately $7,000 monthly for operating expenses for building repairs and maintenance. The Company has no other operating or financing leases with terms greater than 12 months.

Lease liabilities were determined using the Company’s estimated incremental borrowing rate of 3.95% to estimate the present value of the remaining monthly lease payments.

Our operating lease cost is as follows:

Schedule of Operating Lease Cost  

Supplemental cash flow information related to our operating lease is as follows:

Schedule of Supplemental Cash Flow Information Related to Operating Lease 

Remaining lease term and discount rate for our operating lease is as follows:

Schedule of Operating Remaining Lease Term and Discount Rate 

Maturity of our lease liabilities by fiscal year for our operating lease is as follows:

Schedule of Maturity of Lease Liabilities