NOTES TO FINANCIAL STATEMENTS
NOTE 1 – Basis of Presentation and Organization
Basis of Presentation
The accompanying unaudited interim financial statements of SolarWindow
Technologies, Inc. (the “Company”) as of November 30, 2019, and for the three months ended November 30, 2019
and 2018, have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.”)
of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation
S-X. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have
been condensed or omitted.
The preparation of financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting
periods. Actual results may differ from those estimates. The interim financial statements should be read in conjunction with the
audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31,
2019. In the opinion of management, the accompanying unaudited interim financial statements have been prepared on the same basis
as the audited financial statements and include all adjustments (including normal recurring adjustments) necessary for the fair
presentation of the Company’s financial position as of November 30, 2019, results of operations for the three months ended
November 30, 2019 and 2018, and stockholders’ equity and cash flows for the three months ended November 30, 2019 and 2018.
The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations
for any interim period are not necessarily indicative of the results of operations for the entire year.
Organization
SolarWindow Technologies, Inc. was incorporated in the State of
Nevada on May 5, 1998. Products derived from the Company’s SolarWindow™ technology harvest light energy from the sun
and from artificial light sources, by generating electricity from a transparent coating of organic photovoltaic (“OPV”)
solar cells, applied to glass and plastics, thereby creating a “photovoltaic” effect. The Company’s ticker symbol
is WNDW.
Photovoltaics are best known as “solar panels” providing
a method to generate electricity using solar cells to convert energy from the sun into a flow of electrons. Conventional PV power
is generated by solar modules composed of interconnected mono- or poly-crystalline cells containing PV and electricity-conducting
materials. These materials are usually opaque (i.e., non-transparent) and only effectively generate electricity with sun light.
The Company’s researchers have replaced these materials with a very thin layer of specially developed compounds that allow
SolarWindow™ technology to remain see-through or “transparent” while generating electricity when exposed to either
sun or artificial light. SolarWindow™ coatings generate electricity when exposed to direct, diffused, filtered, low, or reflected
natural or artificial light. The company filed a patent application related to these specially developed compounds.
Liquidity and Management’s Plan
The Company does not have any commercialized products, has not generated
any revenue since inception and has sustained recurring losses and negative cash flows from operations since inception. Due to
the “start-up” nature of our business, we expect to incur losses as we continue development of our products and technologies.
As of November 30, 2019, the Company had $15,590,512 of cash on hand and current liabilities of $265,739. The Company believes
that it currently has sufficient cash to meet its funding requirements over the next twelve months following the issuance of this
Quarterly Report on Form 10-Q. However, the Company has experienced and continues to experience negative cash flows from operations,
as well as an ongoing requirement for substantial additional capital investment. The Company expects that it may need to raise
additional capital to accomplish its business plan over the next several years. If additional funding is required, the Company
expects to seek to obtain that funding through private equity or convertible debt. There can be no assurance as to the availability
or terms upon which such financing and capital might be available.
NOTE 2 – Summary of Significant Accounting Policies
Use of Estimates
The preparation of the Company’s financial statements requires
management to make estimates and use assumptions that affect the reported amounts of assets, liabilities and expenses. These estimates
and assumptions are affected by management’s application of accounting policies. On an on-going basis, the Company evaluates
its estimates. Actual results and outcomes may differ materially from these estimates and assumptions.
Cash and Cash Equivalents
The Company considers cash deposits to be cash and all highly liquid
investment instruments with original maturities of 90 days or less when purchased, to be cash equivalents. Cash deposits
are carried at cost which approximates their fair value.
The Company had $15,950,512 of cash deposits as of November
30, 2019, including $232,025 in domestic bank accounts and $15,718,487 held in Canadian bank accounts in excess of Canadian
Deposit Insurance Corporation insured limits.
Equipment
Fixed assets are carried at cost, less accumulated depreciation.
Major improvements are capitalized, while repair and maintenance are expensed when incurred. Renewals and betterments that materially
extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated
depreciation are removed from the accounts, and any resulting gain or loss is reflected in that period.
Depreciation is computed on a straight-line basis over estimated
useful lives of the related assets. The estimated useful lives of depreciable assets are:
|
|
Estimated
|
|
|
Useful Lives
|
|
|
(in years)
|
Computer equipment and software
|
|
3
|
Equipment, furniture and fixtures
|
|
5
|
Patent and Trademark Costs
Costs related to filing and pursuing patent applications are
recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain.
Fair Value Measurements
The Company measures fair value as the price that would be received
to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting
date. The Company utilizes a three-tier hierarchy which prioritizes the inputs used in the valuation methodologies in measuring
fair value:
Level 1. Valuations based on quoted prices in active markets for identical
assets or liabilities that an entity has the ability to access. The Company has no assets or liabilities measured and recorded
on a recurring or nonrecurring basis with Level 1 inputs.
Level 2. Valuations based on quoted prices for similar assets or liabilities,
quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be
corroborated by observable data for substantially the full term of the assets or liabilities. The Company has no assets or liabilities
measured and recorded on a recurring or nonrecurring basis with Level 2 inputs.
Level 3. Valuations based on inputs that are supported by little or no market
activity and that are significant to the fair value of the assets or liabilities. The Company has no assets or liabilities measured
and recorded on a recurring or nonrecurring basis with Level 3 inputs.
Fair Value of Financial Instruments
The carrying value of cash and accounts payable approximate their
fair value because of the short-term nature of these instruments and their liquidity. It is not practical to determine the fair
value of the Company’s notes payable due to the complex terms. Management is of the opinion that the Company is not exposed
to significant interest or credit risks arising from these financial instruments.
Research and Product Development
Research and product development costs represent costs incurred
to develop the Company’s technology, including salaries and benefits for research and development personnel, allocated overhead
and facility occupancy costs, supplies, equipment purchase and repair and other costs. Research and product development costs are
expensed when incurred, except for nonrefundable advance payments for future research and development activities which are capitalized
and recognized as expense as the related services are performed.
Stock-Based Compensation
The Company accounts for stock-based compensation in accordance
with ASC 718, Stock Based Compensation. ASC 718 requires all stock-based payments to directors, employees and consultants,
including grants of stock options, to be recognized in the consolidated statements of operations based on their fair values. The
Company uses the Black-Scholes option pricing model (the “Black-Scholes Model”) to determine the weighted-average
fair value of options granted and recognizes the compensation expense of stock-based awards on a straight-line basis over the vesting
period of the award. If a stock-based award contains performance-based conditions, at the point that it becomes probable that the
performance conditions will be met, the Company records a cumulative catch-up of the expense from the grant date to the current
date, and then amortizes the remainder of the expense over the remaining service period. Management evaluates when the achievement
of a performance-based condition is probable based on the expected satisfaction of the performance conditions as of the reporting
date.
The determination of the fair value of stock-based payment awards
utilizing the Black-Scholes option pricing model requires the use of the following assumptions: expected volatility of our common
stock, which is based on our own calculated historical rate; expected life of the option award, which we elected to calculate using
the simplified method; expected dividend yield, which is 0%, as we have not paid and do not have any plans to pay dividends on
our common stock; and the risk-free interest rate, which is based on the U.S. Treasury rate in effect at the time of grant with
maturities equal to the stock option award’s expected life. The Company evaluates the assumptions used to value the awards
at each grant date and if factors change and different assumptions are utilized, stock-based compensation expense may differ significantly
from what has been recorded in the past. If there are any modifications or cancellations of the underlying unvested securities,
the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Forfeitures
are accounted for as they occur. See “NOTE 4 – Common Stock and Warrants” and “NOTE 5 - Stock Options”
for additional information on the Company’s stock-based compensation plans.
Income Taxes
The Company accounts for income taxes using the asset and liability
method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences
attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases and tax credits and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected
to be realized. The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions, if
any, taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest
expense or other expense, respectively.
Segment Reporting
The Company’s business is considered to be operating in one
segment based upon the Company’s organizational structure, the way in which the operations are managed and evaluated, the
availability of separate financial results and materiality considerations.
Net Income (Loss) Per Share
The computation of basic earnings per share (“EPS”)
is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that
are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average
shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common
shares outstanding using the treasury stock method. The computation of diluted net income per share does not assume conversion,
exercise or contingent issuance of securities that would have an antidilutive effect on earnings per share. Therefore, when calculating
EPS if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the EPS calculation is
antidilutive. Furthermore, options and warrants will have a dilutive effect under the treasury stock method only when the average
market price of the common stock during the period exceeds the exercise price of the options or warrants (they are in the money).
Following is the computation of basic and diluted net loss per
share for the three months ended November 30, 2019 and 2018:
|
|
Three Months Ended November 30,
|
|
|
2019
|
|
2018
|
Basic and Diluted EPS Computation
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
Loss available to common stockholders'
|
|
$
|
(1,105,278
|
)
|
|
$
|
(1,686,916
|
)
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
52,959,323
|
|
|
|
52,887,931
|
|
Basic and diluted EPS
|
|
$
|
(0.02
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
The shares listed below were not included in the computation of diluted losses per share because to do so would have been antidilutive for the periods presented:
|
|
|
|
|
|
|
|
|
Stock options
|
|
|
2,935,334
|
|
|
|
1,271,334
|
|
Warrants
|
|
|
19,483,517
|
|
|
|
19,483,517
|
|
Total shares not included in the computation of diluted losses per share
|
|
|
22,418,851
|
|
|
|
20,754,851
|
|
Recent Accounting Standards
The Company reviews new accounting standards as issued. Although
some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable,
the Company has not identified any standards that the Company believes merit further discussion. The Company believes that none
of the new standards will have a significant impact on the financial statements.
NOTE 3 - Equipment
|
|
November 30,
|
|
August 31,
|
|
|
2019
|
|
2019
|
Computers, office equipment and software
|
|
$23,709
|
|
$18,678
|
Furniture and fixtures
|
|
|
12,634
|
|
|
|
12,634
|
|
Product development and manufacturing equipment
|
|
|
113,820
|
|
|
|
113,820
|
|
In-process equipment
|
|
|
1,292,655
|
|
|
|
1,292,655
|
|
Total equipment
|
|
|
1,442,818
|
|
|
|
1,437,787
|
|
Accumulated depreciation
|
|
|
(75,542
|
)
|
|
|
(68,858
|
)
|
Equipment, net
|
|
$
|
1,367,276
|
|
|
$
|
1,368,929
|
|
During the three months ended November 30, 2019 and 2018, the Company
purchased $5,031 and $11,855 of equipment, respectively. During the three months ended November 30, 2019 and 2018, the Company
recognized depreciation expense of $6,684 and $3,988, respectively.
During the year ended August 31, 2019, the Company made payments
totaling $1,292,655 towards the purchase of manufacturing equipment with an estimated total cost of $1,803,000. That equipment
is currently being fabricated to our particular design specifications and will provide a significant increase in our ability to
develop and showcase prototype products and components at or near “commercial size.” The remaining $510,345 is planned
to be paid upon completion of the equipment sometime during or before April, 2020.
NOTE 4 – Common Stock and Warrants
Common Stock
At November 30, 2019, the Company had 300,000,000 authorized shares
of common stock with a par value of $0.001 per share, 52,959,323 shares of common stock outstanding and 906,085 shares reserved
for issuance under the Company’s 2006 Long-Term Incentive Plan (the “2006 Plan”) as adopted and approved
by the Company’s Board on October 10, 2006 that provides for the grant of stock options to employees, directors, officers
and consultants (See “NOTE 5 - Stock Options”).
Warrants
Each of the Company’s warrants outstanding entitles the holder
to purchase one share of the Company’s common stock for each warrant share held. Other than the Series O Warrants and Series
P Warrants, all of the following warrants may be exercised on a cashless basis. A summary of the Company’s warrants outstanding
and exercisable as of November 30, 2019 and August 31, 2019 is as follows:
|
|
Shares of Common Stock
Issuable from Warrants
Outstanding as of
|
|
Weighted
Average
|
|
|
|
|
|
|
November 30,
|
|
August 31,
|
|
Exercise
|
|
|
|
|
Description
|
|
2019
|
|
2019
|
|
Price
|
|
Date of Issuance
|
|
Expiration
|
Series M
|
|
|
246,000
|
|
|
|
246,000
|
|
|
$
|
2.34
|
|
|
December 7, 2015
|
|
December 31, 2022
|
Series N
|
|
|
767,000
|
|
|
|
767,000
|
|
|
$
|
3.38
|
|
|
December 31, 2015
|
|
December 31, 2022
|
Series P
|
|
|
213,500
|
|
|
|
213,500
|
|
|
$
|
3.70
|
|
|
March 25, 2016
|
|
December 31, 2022
|
Series R
|
|
|
468,750
|
|
|
|
468,750
|
|
|
$
|
4.00
|
|
|
June 20, 2016
|
|
December 31, 2022
|
Series S-A
|
|
|
300,000
|
|
|
|
300,000
|
|
|
$
|
2.53
|
|
|
July 24, 2017
|
|
December 31, 2022
|
Series S
|
|
|
821,600
|
|
|
|
821,600
|
|
|
$
|
3.42
|
|
|
September 29, 2017
|
|
September 29, 2022
|
Series T
|
|
|
16,666,667
|
|
|
|
16,666,667
|
|
|
$
|
1.70
|
|
|
November 26, 2018
|
|
November 26, 2025
|
Total
|
|
|
19,483,517
|
|
|
|
19,483,517
|
|
|
|
|
|
|
|
|
|
NOTE 5 - Stock Options
Stock option grants pursuant to the 2006 Plan vest either immediately
or over one to five years and expire from six to ten years after the date of grant. Stockholders previously approved 5,000,000
shares for grant under the 2006 Plan, of which 906,085 remain available for grant, 1,305,001 have been exercised in total with
629,677 net shares (due to a cashless exercise feature) issued pursuant to such exercises of vested options from inception of the
2006 Plan through November 30, 2019. All shares approved for grant and subsequently forfeited are available for future grant. The
Company does not repurchase shares to fulfill the requirements of options that are exercised and therefore issues new shares when
options are exercised. The 2006 Plan was approved by stockholders on February 7, 2011 and expires according to its terms on February
7, 2021.
The Company employs the following key weighted-average assumptions
in determining the fair value of stock options, using the Black-Scholes Model and the simplified method to estimate the expected
term of “plain vanilla” options:
|
|
|
Three Months Ended
|
|
|
|
|
November 30,
|
|
|
|
|
2019
|
|
Expected dividend yield
|
|
|
–
|
|
Expected stock price volatility
|
|
|
82.94 – 86.23%
|
|
Risk-free interest rate
|
|
|
1.40 – 1.69%
|
|
Expected term (in years)
|
|
|
4.5 – 5.75
|
|
Exercise price
|
|
|
$2.32 and $3.54
|
|
Weighted-average grant date fair-value per share
|
|
|
$1.61 and $1.55
|
|
A summary of the Company’s stock option activity for the three
months ended November 30, 2019 and related information follows:
|
|
Number of
Shares
Subject to
Option Grants
|
|
Weighted
Average
Exercise
Price ($)
|
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
|
Aggregate
Intrinsic
Value ($)
|
Outstanding at August 31, 2018
|
|
|
1,291,334
|
|
|
|
5.22
|
|
|
|
|
|
|
|
|
|
Grants
|
|
|
1,506,000
|
|
|
|
3.54
|
|
|
|
|
|
|
|
|
|
Forfeitures and cancellations
|
|
|
(20,000
|
)
|
|
|
4.87
|
|
|
|
|
|
|
|
|
|
Outstanding at August 31, 2019
|
|
|
2,777,334
|
|
|
|
4.31
|
|
|
|
|
|
|
|
|
|
Grants
|
|
|
158,000
|
|
|
|
2.36
|
|
|
|
|
|
|
|
|
|
Outstanding at November 30, 2019
|
|
|
2,935,334
|
|
|
|
4.21
|
|
|
|
8.16
|
|
|
|
131,580
|
|
Exercisable at November 30, 2019
|
|
|
1,808,634
|
|
|
|
4.20
|
|
|
|
8.69
|
|
|
|
4,250
|
|
The aggregate intrinsic value in the table above represents the
total pretax intrinsic value for all “in-the-money” options (i.e. the difference between the Company’s closing
stock price on the last trading day of the period covered by this report and the exercise price, multiplied by the number of shares)
that would have been received by the option holders had all in-the-money option holders exercised their vested options on November
30, 2019. The intrinsic value of the option changes based upon the fair market value of the Company’s common stock. Since
the closing stock price was $3.18 on November 30, 2019 and only 153,000 outstanding options have an exercise price below $3.18
per share, as of November 30, 2018, there is $131,580 of intrinsic value to the Company’s outstanding, in-the-money stock
options.
Three Months Ended November 30, 2019
On October 9, 2019, the Company granted 153,000 options to an employee
with an exercise price of $2.32, vesting at the rate of 1/36th per month and ten-year term. Additionally, on September
16, 2019, the Board granted 5,000 options to a consultant with an exercise price of $3.54, vesting at the rate of 1/20th
per quarter and six-year term.
Three Months Ended November 30, 2018
Due to his resignation from the Board of Directors on October 22,
2018, Joseph Sierchio forfeited 20,000 unvested stock options with an exercise price of $4.87 which resulted in the Company reversing
previously recorded stock compensation expense related to the vesting of said options in the amount of $58,367. During the three
months ended November 30, 2018, the Company did not grant any stock options.
The following table sets forth the share-based compensation cost
resulting from stock option grants, including those previously granted and vesting over time, that were recorded in the Company’s
Statements of Operations for the three months ended November 30, 2019 and 2018:
|
|
Three Months Ended
|
|
|
November 30,
|
|
|
2019
|
|
2018
|
Stock Compensation Expense:
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
172,219
|
|
|
$
|
135,442
|
|
R&D
|
|
|
248,751
|
|
|
|
250,292
|
|
Total
|
|
$
|
420,970
|
|
|
$
|
385,734
|
|
As of November 30, 2019, the Company had $4,260,333 of unrecognized
compensation cost related to unvested stock options which is expected to be recognized over a period of 4.75 years.
The following table summarizes information about stock options outstanding
and exercisable at November 30, 2019:
|
|
Stock Options Outstanding
|
|
Stock Options Exercisable
|
Range of
Exercise
Prices
|
|
Number of
Shares
Subject to
Outstanding Options
|
|
Weighted
Average
Contractual
Life (Years)
|
|
Weighted
Average
Exercise
Price ($)
|
|
Number of
Shares
Subject to
Options Exercise
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
Weighted
Average
Exercise
Price ($)
|
|
2.32
|
|
|
|
153,000
|
|
|
|
9.87
|
|
|
|
2.32
|
|
|
|
4,250
|
|
|
|
9.87
|
|
|
|
2.32
|
|
|
3.28
|
|
|
|
7,500
|
|
|
|
6.96
|
|
|
|
3.28
|
|
|
|
7,500
|
|
|
|
6.96
|
|
|
|
3.28
|
|
|
3.46
|
|
|
|
35,000
|
|
|
|
6.10
|
|
|
|
3.46
|
|
|
|
35,000
|
|
|
|
6.10
|
|
|
|
3.46
|
|
|
3.54
|
|
|
|
1,511,000
|
|
|
|
8.28
|
|
|
|
3.54
|
|
|
|
1,058,050
|
|
|
|
9.41
|
|
|
|
3.54
|
|
|
4.87
|
|
|
|
187,500
|
|
|
|
7.98
|
|
|
|
4.87
|
|
|
|
187,500
|
|
|
|
7.98
|
|
|
|
4.87
|
|
|
5.35
|
|
|
|
1,008,000
|
|
|
|
8.09
|
|
|
|
5.35
|
|
|
|
483,000
|
|
|
|
8.09
|
|
|
|
5.35
|
|
|
5.94
|
|
|
|
33,334
|
|
|
|
1.07
|
|
|
|
5.94
|
|
|
|
33,334
|
|
|
|
1.07
|
|
|
|
5.94
|
|
|
Total
|
|
|
|
2,935,334
|
|
|
|
8.16
|
|
|
|
4.21
|
|
|
|
1,808,634
|
|
|
|
8.69
|
|
|
|
4.20
|
|
NOTE 6 - Related Party Transactions
A related party with respect to the Company is generally defined
as any person (i) (and, if a natural person, inclusive of his or her immediate family) that holds 10% or more of the Company’s
securities, (ii) that is part of the Company’s management, (iii) that directly or indirectly controls, is controlled by or
is under common control with the Company, or (iv) who can significantly influence the financial and operating decisions of the
Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between
related parties.
On August 7, 2017, the Company appointed Jatinder Bhogal to the
Board of Directors. Mr. Bhogal has provided consulting services to the Company through his wholly owned company, Vector Asset Management,
Inc., pursuant to a Consulting Agreement dated February 1, 2014, as amended on November 11, 2016 and on December 1, 2018 (Amendment
No. 2). Pursuant to the Consulting Agreements in effect prior to December 1, 2018, Mr. Bhogal received compensation of $5,000 per
month. Beginning with Amendment No. 2, Mr. Bhogal receives compensation of $18,750 per month. During the three months ended November
30, 2019 and 2018, the Company recognized $56,250 and $15,000 of expense in connection with the Consulting Agreement.
All related party transactions are recorded at the exchange amount
established and agreed to between related parties and are in the normal course of business.
NOTE 7 – Lease
On May 1, 2019, the Company leased office space in Vestal, New York
and entered into a Professional Building Lease Agreement (the “Lease”). The Lease has an initial term of three
years through May 1, 2022 with monthly rent due of $2,200 for the first two years and $2,266 during year three. The Company has
the sole option to renew the lease for an additional two years through May 1, 2024. The amounts disclosed in the Balance Sheets
pertaining to the right-of-use asset and lease liability are measured based on only the initial, three-year term.
The Company’s existing Lease is not subject to any restrictions
or covenants which preclude its ability to pay dividends, obtain financing, or enter into additional Lease’s.
As of November 30, 2019, the Company has not entered into
any leases which have not yet commenced which would entitle the Company to significant rights or create additional obligations.
The Company used its estimated incremental borrowing rate as the
basis to calculate the present value of future lease payments at lease commencement. The incremental borrowing rate represents
the rate the Company would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic
environment.
The components of Lease expenses are as follows:
|
|
Three Months Ended
November 30, 2019
|
Operating lease cost
|
|
$
|
6,666
|
|
Short-term lease costs
|
|
|
-
|
|
Total net lease costs
|
|
$
|
6,666
|
|
Supplemental balance sheet information related to the Lease is as
follows:
|
|
As
of November 30,
2019
|
|
|
|
Operating lease right-of-use asset
|
|
$
|
59,913
|
|
|
|
|
|
|
Current maturities of operating lease
|
|
$
|
23,510
|
|
Non-current operating lease
|
|
|
36,558
|
|
Total operating lease liabilities
|
|
$
|
60,068
|
|
|
|
|
|
|
Weighted Average remaining lease term (in years):
|
|
|
2.42
|
|
Discount rate:
|
|
|
5.85
|
%
|
The Company’s future lease payments, which are presented
as current maturities of operating leases and non-current operating leases liabilities on the Company’s balance sheets as
of November 30, 2019 are as follows:
|
|
Amount
|
2020
|
|
$
|
19,800
|
|
2021
|
|
|
26,664
|
|
2022
|
|
|
18,128
|
|
Total lease payments
|
|
|
64,592
|
|
Less: Imputed interest
|
|
|
(4,525
|
)
|
Total lease obligation
|
|
|
60,067
|
|
Less: current lease obligations
|
|
|
23,510
|
|
Long term lease obligations
|
|
$
|
36,557
|
|
NOTE 8 – Subsequent Events
Management has reviewed material events subsequent to the period
ended November 30, 2019 and through the date of filing of financial statements in accordance with FASB ASC 855 “Subsequent
Events”.