COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2019

Operating Lease

On September 5, 2017, we entered into an operating sublease for office space. The base rent for the sublease is $1,000 per month for a period of one year and month-to-month thereafter. Management has assumed a three-year life for the sublease arrangement. On January 1, 2019, we adopted ASC 842, “Leases,” which resulted in the recognition of an operating lease liability and corresponding right-of use asset (“ROU”) in the amount of $18,352.

As of December 31, 2019, the operating lease liability and ROU asset had a balance of $7,708. The operating lease liability was recorded as a current liability as of December 31 2019.

For the years ended December 31, 2019 and 2018, the Company recognized operating lease cost of $12,000,

The table below reconciles the Company’s future cash obligations for the operating lease liability recorded on the consolidated balance sheet as December 31, 2019:

2020	$	8,000
Total minimum lease payments		8,000
Less amount representing interest		(292	)

Present value of operating lease obligation	$	7,708

Consulting Agreement

We have a written consulting agreement, dated May 31, 2013 and amended effective November 1, 2016, with William E. Beifuss, Jr., our President, Chief Executive Officer, and Acting Chief Financial Officer, for the payment of monthly compensation of $10,000 per month. The agreement may be cancelled by either party with 30 days’ notice.