Quarterly report pursuant to Section 13 or 15(d)

NOTE 4 - LEASES

v3.21.1
NOTE 4 - LEASES
3 Months Ended
Mar. 31, 2021
Notes  
NOTE 4 - LEASES

NOTE 4 – LEASES

 

On December 17, 2020, the Company entered into a 25 ½ month lease agreement for a 2,700-square-foot facility that contains office, warehouse, lab and R&D space in Ft. Myer, Florida. The lease agreement commenced on December 17, 2020 and ends on January 31, 2023. The agreement provided for a total rent of $54,993 over the period. Occupancy of the property commenced on December 17, 2020, there was a 6-week rent holiday and a commencement date of February 1, 2021. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Rent is $3,291 per month from January 15, 2021 to January 31, 2022 and $1,154 from February 1, 2022 to January 31, 2023.

 

The balances for our operating lease where we are the lessee are presented as follows within our condensed consolidated balance sheet:

 

Operating leases:

 

Assets:

 

March 31,

2021

 

December 31,

2020

Operating lease right-of-use asset

$

44,125

$

49,984

 

 

 

 

 

Liabilities:

 

 

 

 

Current Portion of Long-Term Operating Lease

$

32,362

$

29,172

Long-Term Operating Lease, Net of Current Portion

 

9.928

 

15,178

 

$

42,290

$

44,350

 

The components of lease expense are as follows within our condensed consolidated statement of operations:

 

 

 

For the

 

For the

 

 

Quarter ended

 

Quarter ended

 

 

March 31, 2021

 

March 31, 2020

Operating lease expense

$

6,470

$

-

 

Other information related to leases where we are the lessee is as follows:

 

 

For the

 

For the

 

Quarter ended

 

Year ended

 

March 31,

2021

 

December 31,

2020

Weighted-average remaining lease term:

 

 

 

Operating leases

1.83 Years

 

2.08 Years

 

 

 

 

Discount rate:

 

 

 

Operating leases

11.00%

 

11.00%

 

Supplemental cash flow information related to leases where we are the lessee is as follows:

 

 

 

For the

 

 

Quarter ended

 

 

March 31,

2021

Cash paid for amounts included in the measurement of lease liabilities:

$

3,291

 

As of March 31, 2021, the maturities of our operating lease liability are as follows:

 

Year Ended:

 

Operating Lease

December 31, 2021

$

29,622

December 31, 2022

 

15,989

December 31, 2023

 

-

Total minimum lease payments

 

45,611

Less: Interest

 

3,321

Present value of lease obligations

 

42,290

Less: Current portion

 

32,362

Long-term portion of lease obligations

$

9,928