RIGHT TO USE ASSETS AND LEASE LIABILITY
|6 Months Ended|
Jun. 30, 2021
|Disclosure Text Block [Abstract]|
|Lessee, Operating Leases [Text Block]||
NOTE 5 – RIGHT TO USE ASSETS AND LEASE LIABILITY
On February 10, 2021 the Company entered into a Sixth Amendment to the Office Lease at 12424 Wilshire Blvd in Los Angeles dated August 9, 2011 – it is the Fourth Extended Term with respect to Suite 745 and the Expansion Term with respect to Suite 740 which is from July 1, 2021 until June 30, 2022 with a fixed monthly rent equal to $13,702 (down from $16,289); and the security deposit will be reduced by $5,448 so that the balance remaining shall be $27,404.
The Company determined that the Sixth Amendment was a lease modification and accordingly reassessed the lease classification, remeasured the lease liability and adjusted the right-to-use asset. At February 10, 2021 the Company removed the remaining right-to-use net assets of $60,881 and related lease liability of $63,076 and recorded right-to-use assets and related lease liability of $217,903.
On October 1, 2019, the Company entered into a lease agreement whereby the Company leased approximately 1,400 square feet of office space in Rochester, Minnesota commencing November 1, 2019 and expiring on October 31, 2021 at an initial rate of $3,411 per month with escalating payments. The lease agreement includes an option to extend the lease for two additional periods of two years each past its initial term. At lease modification date, the Company estimated the lease liability and the right of use assets at present value using the Company’s estimated incremental borrowing rate of 8%.
As of June 30, 2021, the Company had outstanding five leases with aggregate payments of $38,897 per month, expiring through December 31, 2022.
Right to use assets is summarized below:
During the three and six months ended June 30, 2021, the Company recorded $126,638 and $245,239 and $126,811 and $246,218 for the three and six months ended June 30, 2020 as lease expense to current period operations, respectively.
Lease liability is summarized below:
Maturity analysis under these lease agreements are as follows (000’s):
Lease expense for the three months ended June 30, 2021 and 2020 was comprised of the following:
Lease expense for the six months ended June 30, 2021 and 2020 was comprised of the following:
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef