Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

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OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES
9 Months Ended
Jan. 31, 2022
Operating Lease Right-of-use Assets And Operating Lease Liabilities  
OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

 

On May 1, 2021, the Company entered into a lease agreement for its lease facility in Cheyenne, Wyoming. The term of the lease is for a two-year period from May 2021 to May 2023 starting with a monthly base rent of $1,667. The Company has an option to renew the lease for an additional three years beyond the primary term. The Company typically excludes options to extend the lease in a lease term unless it is reasonably certain that the Company will exercise the option and when doing so is in the Company’s sole discretion. The base rent is subject to an annual increase as defined in the lease agreement. In addition to the monthly base rent, the Company is charged separately for common area maintenance which is considered a non-lease component. These non-lease component payments are expensed as incurred and are not included in operating lease assets or liabilities.

 

On September 1, 2021, the Company entered into another lease agreement for its lease facility in Cheyenne, Wyoming. The term of the lease is for a two-year period from September 2021 to August 2023 with a monthly base rent of $3,100. The Company has an option to renew the lease for an additional two years upon giving a written notice from 60 to 120 days prior to the expiration of the initial term of this lease. The Company typically excludes options to extend the lease in a lease term unless it is reasonably certain that the Company will exercise the option and when doing so is in the Company’s sole discretion.

 

During the three and nine months ended January 31, 2022, lease expenses of $14,375 and $30,725 was included in general and administrative expenses as reflected in the accompanying unaudited condensed consolidated statements of operations.

 

Right-of- use assets are summarized below:

 

   

January 31, 2022

   

April 30, 2021

 
Operating leases   $ 79,205     $    -  

 

Operating Lease liabilities are summarized below:

 

   

January 31, 2022

   

April 30, 2021

 
Operating lease, current portion   $ 52,016     $    -  
Operating lease, long term portion     27,414       -  
Total lease liability   $ 79,430     $ -  

 

The weighted average remaining lease term for the operating leases is 1.41 years and the weighted average incremental borrowing rate is 8.0% at January 31, 2022.

 

The following table includes supplemental cash and non-cash information related to the Company’s lease:

 

    2022     2021  
    Nine months ended January 31,  
    2022     2021  
Cash paid for amounts included in the measurement of lease liabilities            
Operating cash flows from operating lease   $ 30,500     $    -  
                 
Lease assets obtained in exchange for new operating lease liabilities   $ 106,631     $ -  

 

Minimum lease payments under non-cancelable operating leases at January 31, 2022 are as follows:

 

         
Remainder of fiscal year ended April 30, 2022     14,300  
Year ended April 30, 2023     57,800  
Year ended April 30, 2024     12,400  
Total   $ 84,500  
Less: imputed interest     (5,070 )
Total present value of lease liability   $ 79,430