OPERATING LEASE AND RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

OPERATING LEASE AND RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

NOTE 4 – OPERATING LEASE AND RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases are not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term.

The Company leases 823 square feet of office space located at 14497 North Dale Mabry Highway, Suite 209-N, Tampa, Florida 33618.  The Company entered into an amended lease agreement commencing on July 1, 2020 through July 31, 2023 with base month rents of $1,475 from July 1, 2020 to September 30, 2021, $1,519 from July 1, 2021 to September 30, 2022, $1,564 from July 1, 2022 to September 30, 2023 and $1,611 from July 1, 2023 to July 31, 2023. Under the terms of the lease there may be additional fees charged above the base monthly rental fee.

On July 1, 2020, upon renewal of the lease, the Company recorded a right-of-use asset and lease liability of $48,957. During the nine month periods ended September 30, 2022 and 2021, the Company recorded and $13,802 as operating lease expense, which is included in rent expense on the consolidated statements of operations. During the three month periods ended September 30, 2022 and 2021, the Company recorded $4,601 as operating lease expense, which is included in rent expense on the consolidated statements of operations. 

Right-of-use assets at September 30, 2022 and December 31, 2021 are summarized below:

	September 30, 2022			December 31, 2021
Office lease	$	48,957		$	48,957
Less accumulated amortization		(34,197	)		(21,946	)
Right of use assets, net	$	14,760		$	27,011

Operating Lease liabilities are summarized below:

	September 30, 2022			December 31, 2021
Office lease	$	15,231		$	27,594
Less: current portion		(15,231	)		(16,876	)
Long term portion	$	-		$	10,718

Maturity of lease liabilities are as follows:

Year ended December 31, 2022	$	4,729
Year ended December 31, 2023		11,081
Total future minimum lease payments		15,810
Less: Present value discount		(579	)
Lease liability	$	15,231

The Company also has an operating lease for a house located in Palm Bay, Florida that it leases on a month-to-month basis for $1,400 per month. The Company uses the house to store equipment and gear and to provide temporary work-related living quarters for its divers, personnel, consultants and independent contractors involved in its exploration and recovery operations. The Company also pays a rental fee for a space in a park on an as needed basis.