|
NOTE
4 - OPERATING LEASE
At
September 30, 2021, the Company has one operating lease for its headquarters office space in Burbank. The lease commenced on January
1, 2020, and has a term for 5
years, with annual fixed rental payments ranging from $90,000
to $101,296.
At September 30, 2021, the balance of the lease’s right of use asset and corresponding lease liability were $300,483
and $336,185,
respectively. At September 30, 2021, the Company is also obligated
under a lease that was abandoned in December 2020. The total due to the lessor for the abandoned lease space is $235,759
and
is recorded as lease settlement obligation at September 30, 2021.
The
components of lease expense and supplemental cash flow information related to leases for the period are as follows:
SCHEDULE OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
| |
|
Nine months ended September 30, 2021
|
|
| |
|
|
|
| Lease Cost |
|
|
|
|
| Operating lease cost (included in selling, general, and administrative expense in the Company’s statement of operations) |
|
$ |
95,586 |
|
| |
|
|
|
|
| Other Information |
|
|
|
|
| Cash paid for amounts included in the measurement of lease liabilities for 2021 |
|
$ |
93,165 |
|
| Weighted average remaining lease term – operating leases (in years) |
|
|
2.50 |
|
| Average discount rate – operating leases |
|
|
4 |
% |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES
| |
|
At September 30, 2021 |
|
| Operating leases |
|
|
|
|
| Long-term right-of-use assets |
|
$ |
300,483 |
|
| |
|
|
|
|
| Short-term operating lease liabilities |
|
$ |
105,443 |
|
| Long-term operating lease liabilities |
|
|
230,742 |
|
| Total operating lease liabilities |
|
$ |
336,185 |
|
Maturities
of the Company’s lease liabilities are as follows:
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES
| Year Ending |
|
Operating Leases |
|
| 2021(remainder of year) |
|
|
26,286 |
|
| 2022 |
|
|
95,481 |
|
| 2023 |
|
|
98,345 |
|
| 2024 |
|
|
139,767 |
|
| Total lease payments |
|
|
359,879 |
|
| Less: Imputed interest |
|
|
(23,694 |
) |
| Present value of lease liabilities |
|
|
336,185 |
|
| |
|
|
|
|
| Less current portion |
|
|
(105,443 |
) |
| Operating lease liabilities, long-term |
|
$ |
230,742 |
|
Lease
expense was $95,586 and
$171,333 during
the nine months ended September 30, 2021 and 2020, respectively.
|