Annual report pursuant to Section 13 and 15(d)

Leases

v3.21.2
Leases
12 Months Ended
Sep. 30, 2021
Leases  
Leases

7. Leases

 

The Company adopted ASC 842 - Leases on October 1, 2019. Through September 30, 2019, the Company’s leases consisted of leased office space under various operating leases with terms of one year or less. These leases qualified as short-term leases and as such, there was no cumulative impact from the adoption of ASC 842.

 

In December 2019, the Company entered a 36-month lease for office space in Princeton, New Jersey, which commenced February 1, 2020. At that time, the Company terminated its existing month-to-month leases for office space.

 

The components of lease expense for the years ended September 30, 2021 and 2020 are as follows:

 

Lease expense   2021     2020  
Operating lease expense   $ 102,156     $ 68,108  
Short-term lease expense     12,935       57,756  
Total lease cost   $ 115,091     $ 125,864  

 

At September 30, 2021, the weighted average remaining lease term was 1.33 years and the weighted average discount rate was 12%. At September 30, 2020, the weighted average remaining lease term was 2.3 years and the weighted average discount rate was 12%.

 

Cash flow information related to operating leases for the years ended September 30, 2021 and 2020 is as follows:

 

Cash paid for amounts included in the measurement of lease liabilities:   2021     2020  
Operating cash flows from operating leases   $ 101,516     $ 66,834  

 

Future minimum lease payments under non-cancellable leases at September 30, 2021 are as follows:

 

Fiscal year      
2022   $ 103,440  
2023     34,695  
Total undiscounted lease payments     138,135  
Less: imputed interest     (13,003 )
Total lease liabilities   $ 125,132