9. LEASE OBLIGATIONS

 

The Company is committed to minimum lease payments as follows:

 

Maturity Analysis  June 30,
2025
 
   $ 
     
Year 1   475,087 
Year 2   313,230 
Year 3   - 
Year 4   - 
Year 5   - 
More than five years   - 
Total undiscounted lease liabilities   788,317 
Less: imputed interest   (47,055)
Present value of lease liabilities   741,262 
      
Less: Current portion of lease liabilities   (435,507)
Non-current portion of lease liabilities   305,755 

 

On July 29, 2024, the Company entered into a lease agreement for new office space in Vancouver, British Columbia. This office occupies approximately 2,243 square feet with a monthly basic rental rate and operating charges of an estimated C$12,296 for the two-year term of the agreement. The Company used an incremental borrowing rate of 7% and recognized an ROU asset and corresponding operating lease liability of $205,201.

 

On October 5, 2023, BayMedica amended its lease located in South San Francisco, California, in order to extend its lease to May 14, 2027. The Company is obligated to pay $1,295,759 over the three-year period unless terminated before the end of the period. The Company used an incremental borrowing rate of 6.15% and recognized a ROU asset and corresponding operating lease liability of $953,935. The Company can terminate the lease with three months’ written notice and a payment of $187,938. 

Historical Timeline

Fiscal YearFiled
2025Sep 23, 2025Showing above
2024Sep 30, 2024
2023Sep 29, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.