RIGHT OF USE ASSETS

12 Months Ended

Oct. 31, 2021

Right Of Use Assets

RIGHT OF USE ASSETS

14. RIGHT OF USE ASSETS

The Company entered into a month to month verbal lease at the time the Company was formed that is classified as right of use asset and lease liability. The lease for the Company’s office space is estimated to be through June 2022. In accordance with ASU 2016-02, the Company calculated the present value of the leases using the average commercial real estate interest rate of 5.50% at the commencement of the office lease. Applying the commercial rate, the Company calculated the present value of $ for the office lease as of October 31, 2021.

As of October 31, 2021, the right of use assets associated with future operating lease is as follows:

Total present value of right of use asset under lease agreement	$	150,496
Amortization of right of use asset		(118,534	)
Total right of use asset as of October 31, 2021	$	40,962
Less current portion due within one year		40,962
Long-term right of use asset	$	-0-

Total amortization expense related to the right of use assets under the verbal lease agreement was $38,775 and $36,173 for the years ended October 31, 2021 and 2020, respectively.

Future amortization of the right of use asset as of October 31, 2021 is as follows:

2022		40,962
Total	$	40,962