RIGHT OF USE ASSET

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

RIGHT OF USE ASSET

NOTE 8–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. 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, 2021, including the total amount of imputed interest related:

Years ended December 31:

2021	$	62,071
2022		85,039
2023		87,590
2024		90,217
2025		7,536
	$	332,453
Less: Imputed interest		(68,111	)
Total	$	264,342

The rent expense was $15,295 and $21,914 for the three months ended March 31, 2021 and 2020, respectively.