RIGHT OF USE ASSET

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

RIGHT OF USE ASSET

NOTE 7 – RIGHT OF USE ASSET

Lease Agreement

In January 2020, the Company entered into a lease agreement commencing February 8, 2020 for its current facility which expires in 2025. The term of the lease is for five years. The Company also entered into a six month option to purchase its current facility under terms and conditions of the lease. At inception of the lease, the Company recorded a right of use asset and liability. The Company used an effective borrowing rate of 12% within the calculation. The following are the expected lease payments as of March 31, 2020, including the total amount of imputed interest related:

Years ended December 31, :

2020	$	53,122
2021		82,561
2022		85,039
2023		87,590
2024		90,217
2025		7,536
	$	406,065
Less: Imputed interest		(102,721	)
Total	$	303,344

See accompanying notes to the consolidated financial statements.