NOTE 9 - OPERATING LEASES

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

(9) OPERATING LEASES

(9) OPERATING LEASES

Practical Expedients and Elections

The Company elected the package of practical expedients permitted under the transition guidance, which allowed us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that exist prior to adoption of the new standard. We also elected the short-term lease recognition exemption for all leases that qualify.

Discount Rate Applied to Property Operating Lease

To determine the present value of minimum future lease payments for operating leases at January 1, 2019, the Company was required to estimate a rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”). The Company determined the appropriate IBR by identifying a reference rate and making adjustments that take into consideration financing options and certain lease-specific circumstances. For the reference rate, the Company used the average interest rate for its latest borrowings.

Right of Use Assets

Right of use assets are included in the unaudited condensed consolidated Balance Sheet as follows:

Non-current assets

Right of use assets, net of amortization - $1,212,398

Total operating lease cost

Individual components of the total lease cost incurred by the Company is as follows:

	Three Months Ended March 31, 2019
Operating lease expense	$113,682

Minimum rental payments under operating leases are recognized on a straight light basis over the term of the lease.

WEST COAST VENTURES GROUP CORP.

Notes to Unaudited Condensed Consolidated Financial Statements

(9) OPERATING LEASES, continued

Maturity of operating leases

The amount of future minimum lease payments under operating at March 31, 2019 are as follows:

	Operating Lease
Undiscounted future minimum lease payments:
2019 (9 months remaining)	$ 265,386
2020	314,582
2021	219,168
2022	173,354
2023	183,708
Thereafter	560,997
Total	1,717,195
Amount representing imputed interest	(462,152)
Total operating lease liability	$ 1,255,043
Current portion of operating lease liability	$ 194,920
Operating lease liability, non-current	$ 1,060,223