COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

NOTE 8: COMMITMENTS AND CONTINGENCIES

Lease Agreement

In October 2019, the Company entered into a 5-year lease of approximately 99,819 square feet of warehouse store and office space with an entity of which the Company’s chief executive officer is an owner. The lease requires base

monthly rent of $11,100. The Company has annual options to extend for one-year, during which period rent will increase 3% annually. Future minimum payment on the lease are as follows:

Years Ending December 31,
2021 (Remainder)	$	33,300
2022		133,200
2023		133,200
2024		122,100
Total	$	421,800

At inception of the lease, the Company recorded a right to use asset and obligation of $378,426, equal to the present value of remaining payments of minimum required lease payments.

The Company amortized $55,400 of the right to use asset during the nine months ended September 30, 2021.

Rent expense for the nine months ended September 30, 2021 and 2020 was $99,447 and $126,831, respectively.

Legal Matters

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. There are no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations and there are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.