Quarterly report pursuant to Section 13 or 15(d)

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v3.23.3
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9 Months Ended
Sep. 30, 2023
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NOTE 6 - LEASE

 

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:

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Total lease liability

 

$ 216,537

 

 

$ 315,671

 

Less: short term portion

 

 

146,187

 

 

 

134,343

 

Long term portion

 

$ 70,350

 

 

$ 181,328

 

 

Maturity analysis under these lease agreements are as follows:

 

 

 

Total

 

2023

 

$ 39,308

 

2024

 

 

159,420

 

2025

 

 

31,690

 

Subtotal

 

 

230,418

 

Less: Present value discount

 

 

(13,881 )

Lease liability

 

$ 216,537

 

 

Lease expense for the three and nine months ended September 30, 2023 and 2022 was comprised of the following:

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Operating lease expense

 

$ 34,522

 

 

$ 36,192

 

 

 

$ 34,522

 

 

$ 36,192

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

Operating lease expense

 

$ 107,326

 

 

$ 108,576

 

 

 

$ 107,326

 

 

$ 108,576

 

 

During the nine months ended September 30, 2023 and 2022, the Company paid $113,508 and $112,036 lease expense in cash, respectively.

 

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

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Weighted-average remaining lease term

 

 

1.4

 

 

 

2.1