Quarterly report pursuant to Section 13 or 15(d)

RIGHT TO USE ASSETS AND LEASE LIABILITY

RIGHT TO USE ASSETS AND LEASE LIABILITY

3 Months Ended

Mar. 31, 2019

Note 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY

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.

Right to use assets is summarized below:

	March 31, 2019
Right to use assets	$	139,407
Less accumulated depreciation		(126,544	)
Right to use assets, net	$	12,863

During the three months ended March 31, 2019, the Company recorded $13,982 as lease expense to current period operations.

Lease liability is summarized below:

	March 31, 2019
Total lease liability	$	13,245
Less: short term portion		(13,245	)
Long term portion	$	-

Maturity analysis under these lease agreements are as follows:

Nine months ended December 31, 2019	$	13,422
Less: Present value discount		(177	)
Lease liability	$	13,245

Lease expense for the three months ended March 31, 2019 was comprised of the following:

Operating lease expense	$	13,040
Short-term lease expense		942
Variable lease expense		-
	$	13,982