Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Note 7. Leases

Note 7. Leases

The Company determines if an arrangement is a lease, or contains a lease, at the inception of an arrangement. If the Company determines that the arrangement is a lease, or contains a lease, at lease inception, it then determines whether the lease is an operating lease or finance lease. Operating and finance leases result in recording a right-of-use (“ROU”) asset and lease liability on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating lease ROU assets and operating lease liabilities, the Company uses the non-cancellable lease term plus options to extend that it is reasonably certain to exercise. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The Company’s leases generally do not provide an implicit rate. As such, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. The Company has elected not to separate lease and non-lease components for any class of underlying asset.

In February 2020, the Company entered into a two-year lease for office premises located at 4 Becker Farm Road, Suite 105, Roseland, New Jersey. Monthly base rent in year one of the lease is $4,356; and $4,459 in year 2 of the lease. The term (and payment of the monthly rent) commences upon substantial completion of the landlord’s work, which was expected to occur on or before May 31, 2020. Due to the COVID-19 pandemic the lease term commenced on August 1, 2020.

Supplemental lease information as of December 31, 2020:

Right-of-use asset	$	79,462
Short-term operating lease liability	$	51,125
Long-term operating lease liability	$	28,607
Remaining term		1.6 years
Discount rate		7	%

The Company does not have any finance leases.

Supplemental cash flow information for the nine months ended December 31, 2020:

Cash paid for amount included in the measurement of lease liabilities for operating lease	$	26,134
Right-of-use asset obtained in exchange for lease obligation	$	98,402

The Company leases office space under a non-cancellable operating lease expiring in 2022. Future lease payments included in the measurement of lease liabilities on the balance sheet at December 31, 2020 for future periods are as follows:

Years ending December 31, 2020,
2021	$	52,787
2022	$	31,213
Total future minimum lease payments	$	84,000
Less imputed interest	$	4,538
Total	$	79,462