NOTE 6 - LEASES

Operating leases

Prior to 2020, the Company entered into several lease amendments with landlord whereby the Company agreed to lease office space in Anaheim, California. The current term expires on January 31, 2025. The current lease has escalating payments from $9,905 per month to $11,018 per month. The Company recorded an aggregate value of right to use assets and lease liability of $500,333.

On June 16, 2020, the Company entered into a lease agreement, whereby the Company agreed to lease office space in Costa Mesa, California for a term of 5 years. Due to COVID-19, the Company was not able to move in or take possession until 30 days after shelter in place has been lifted in Orange County, CA. The Company will owe monthly rental payments ranging from $2,286 to $2,584 over the term of the lease. On September 20, 2020, the Company took possession of the office space and recorded right to use assets and lease liability of $120,346.

Lease liability is summarized below:

Maturity analysis under these lease agreements are as follows:

Lease expense for the years ended December 31, 2021 and 2020 was comprised of the following:

During the years ended December 31, 2021 and 2020, the Company paid $143,447 and $105,121 lease expense in cash, respectively.

Weighted-average remaining lease term and discount rate for operating leases are as follows: