NOTE 9: LEASES

6 Months Ended

Jun. 30, 2021

Notes

NOTE 9: LEASES

NOTE 9: LEASES

On June 20, 2019, the Company entered into a Lease Agreement with Emerging Growth for the lease of office space in Whitefish, Montana, for a period of one year at a rate of $1,500 per month. On August 5, 2020, the Company entered into a lease agreement with Emerging Growth for additional office space in Whitefish, Montana, replacing its previous lease from June 20, 2019. The term of the lease commenced on September 1, 2020 for a period of one year at a rate of $4,500 per month.  The lease contains an option for the Company to renew the lease for a period of one additional year at a monthly rent subject to a 3% increase.  Management has elected a policy to exclude leases with an initial term of 12 months or less from the balance sheet presentation required under ASC 842. As a result, the office lease has been excluded from balance sheet presentation as it has an original term of 12 months or less.

On March 30, 2021, the Company entered into a new lease with Emerging Growth, which took the place of the old lease effective April 1, 2021. The lease provides for payments of $4,500 per month and has a term of three years and contains an option for the Company to renew the lease for a period of one additional year at a monthly rent subject to a 3% increase.

The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases maturing as of June 30:

	Operating Leases
2021	$	40,500
2022		54,000
2023		54,000
2024		55,215
Thereafter		1,935
Total minimum lease payments including interest		205,650
Less: Amounts representing interest		(35,097	)
Present value of minimum lease payments		170,552
Less:  Current portion of lease liabilities		(38,686	)
Non-current portion of lease liabilities	$	131,866
Cash payments on lease liabilities	$	217,620
Weighted average remaining lease term	4 year
Weighted average discount rate		10	%