NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY

12 Months Ended

Dec. 31, 2019

Notes

NOTE 5 - RIGHT TO USE ASSETS AND LEASE LIABILITY

NOTE 5 – RIGHT TO USE ASSETS AND LEASE LIABILITY

Effective June 1, 2018, the Company entered into a two-year lease for approximately 250 square feet in New York City, New York, expiring May 31, 2020 with monthly payments of $2,800 per month.  In addition, the Company entered into a two-year lease for office space of approximately 770 square feet in Hong Kong, expiring January 10, 2020, with monthly payments of approximately $4,371 per month. The Company has an option to extend the leases for an additional (option) terms.

At lease commencement dates, the Company estimated the lease liability and the right of use assets at present value using the Company’s estimated incremental borrowing rate of 8% and determined the initial present value, at inception, of $160,240.  On January 1, 2019, upon adoption of ASC Topic 842, the Company recorded right to use assets (net) of $95,111 and lease liability of $95,111.

Right to use assets is summarized below:

	December 31, 2019
New York	$	62,322
Hong Kong		97,918
Subtotal		160,240
Less accumulated depreciation		(146,516	)
Right to use assets, net	$	13,724

During the year ended December 31, 2019 and 2018, the Company recorded $81,066 and $57,409 as lease expense to current period operations.

Lease liability is summarized below:

	December 31, 2019
New York	$	13,724
Hong Kong		-
Total lease liability		13,724
Less: short term portion		(13,724	)
Long term portion	$	-

Maturity analysis under these lease agreements are as follows:

Year ended December 31, 2020	$	14,000
Less:  Present value discount		(276	)
Lease liability	$	13,724

Lease expense for the year ended December 31, 2019 was comprised of the following:

Operating lease expense	$	65,457
Short-term lease expense		15,609
	$	81,066