Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

v3.25.1
LEASES
12 Months Ended
Dec. 31, 2024
LEASES  
LEASES

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 April 9, 2024, 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 60 months beginning approximately May 1, 2024 (upon the landlord's completion of the work on the new space). The extended term expires on April 30, 2029. The extended lease has payments of $4,545 per month. The Company recorded right to use assets and lease liability of $225,663. During the year ended December 31, 2024, the Company recognized other income of $32,405..

 

Lease liability is summarized below:

 

 

 

December 31,

2024

 

 

December 31,

2023

 

Total lease liability

 

$ 199,184

 

 

$ 133,677

 

Less: short term portion

 

 

40,057

 

 

 

122,732

 

Long term portion

 

$ 159,127

 

 

$ 10,945

 

 

Maturity analysis under these lease agreements are as follows:

 

 

 

Total

 

2025

 

$ 54,544

 

2026

 

 

54,544

 

2027

 

 

54,544

 

2028

 

 

54,544

 

2029 and beyond

 

 

18,181

 

Subtotal

 

 

236,357

 

Less: Present value discount

 

 

(37,173 )

Lease liability

 

$ 199,184

 

 

Lease expense for the year ended December 31, 2024 and 2023 was comprised of the following:

 

 

 

2024

 

 

2023

 

Operating lease expense

 

$ 74,708

 

 

$ 138,932

 

 

 

$ 74,708

 

 

$ 138,932

 

 

During the year ended December 31, 2024 and 2023, the Company paid $78,702 and $147,798 lease expense in cash, respectively.

 

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

 

 

 

2024

 

 

2023

 

Weighted-average remaining lease term

 

 

4.3

 

 

 

1.0