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
3 Months Ended
Jul. 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. The monthly base rent was $3,100 and was lowered to $2,950 starting in March 2022. 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 months ended July 31, 2022 and 2021, lease expense of $14,039 and 5,000 was included in general and administrative expenses as reflected in the accompanying consolidated statements of operations.

 

Right-of- use assets are summarized below:

 

   

July 31,

2022

   

April 30,

2022

 
Operating leases   $ 51,341     $ 64,064  

 

Operating Lease liabilities are summarized below:

 

   

July 31,

2022

   

April 30,

2022

 
Operating lease, current portion   $ 42,832     $ 55,630  
Operating lease, long term portion     8,734       8,734  
Total lease liability   $ 51,566     $ 64,364  

 

The weighted average remaining lease term for the operating leases is 0.92 years and the weighted average incremental borrowing rate is 8.0% at July 31, 2022.

 

 

U.S. GOLD CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2022

 

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

 

    2022     2021  
    Period ended July 31,  
    2022     2021  
Cash paid for amounts included in the measurement of lease liabilities                
Operating cash flows from operating lease   $ 14,000     $ 5,000  
Lease assets obtained in exchange for new operating lease liabilities   $ -     $ 37,388  

 

The remaining minimum lease payments under non-cancelable operating leases at July 31, 2022 are as follows:

 

         
Year ended April 30, 2023 - remainder     42,000  
Year ended April 30, 2024     11,800  
Total   $ 53,800  
Less: imputed interest     (2,234 )
Total present value of lease liability   $ 51,566