RIGHT OF USE ASSETS – OPERATING LEASE

3 Months Ended

Jan. 31, 2022

Right Of Use Assets Operating Lease

RIGHT OF USE ASSETS – OPERATING LEASE

NOTE 11. RIGHT OF USE ASSETS – OPERATING LEASE

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 $150,496 for the office lease as of April 30, 2020.

As of January 31, 2022, 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 – operating lease		(119,565	)
Total right of use asset – operating lease as of January 31, 2022	$	30,931
Less current portion due within one year		30,931
Long-term right of use asset – operating lease	$	-0-

Total amortization expense related to the right of use assets under the verbal lease agreement was $10,031 and $9,495 for the three month periods ended January 31, 2022 and 2021, respectively.

Future amortization of the right of use asset as of January 31, 2022 is as follows:

2022 $ 30,931