|3 Months Ended|
Mar. 31, 2020
|Note 6 - LEASE||
On March 9, 2016, the Company entered into a lease amendment and expansion agreement, whereby the Company agreed to lease office space in Anaheim, California, commencing July 1, 2016 and expiring on June 30, 2019. On January 1, 2019, upon adoption of ASC Topic 842, the Company recorded right to use assets of $25,465, lease liability of $26,229 and eliminated deferred rent of $764.
On February 14, 2019, the Company extended the term of its lease for an additional 63 months beginning July 1, 2019 (at expiry of the original lease). The extended term expires on September 30, 2024. The extended lease has escalating payments from $5,522 per month to $6,552 per month. On February 14, 2019, the Company reassessed the value of right to use assets and lease liability of $299,070.
On July 15, 2019, the Company and its landlord agreed that the Company would move to a larger space within the building that currently houses its principal executive offices. The Company extended the term of its lease for an additional 63 months beginning approximately November 1, 2019. The extended term expires on January 31, 2025. The extended lease has escalating payments from $9,505 per month to $11,018 per month. On November 1, 2019, the Company accounted for the modification as a separate lease contract and recorded right to use assets and lease liability of $201,263.
During the three months ended March 31, 2020 and 2019, the Company recorded $23,557 and $13,040, respectively, as lease expense to current period operations.
Lease liability is summarized below:
Maturity analysis under these lease agreements are as follows:
Lease expense for the three months ended March 31, 2020 was comprised of the following:
During the three months ended March 31, 2020, the Company paid $28,514 lease expense in cash.
Weighted-average remaining lease term and discount rate for operating leases are as follows: