Right of Use Leased Asset and Lease Liability

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Right of Use Leased Asset and Lease Liability

Note M – Right of Use Leased Asset and Lease Liability

The Company executed a lease agreement for its office space at 9130 W. Post Rd., Suite 200, Las Vegas, NV 89148 with a commencement date of January 10, 2020. The lease has a ten-year term with an annual payment of $180,480 per annum during the lease term. The lease is accounted for as an operating lease under ASU 2016-02, Leases – (Topic 842). The Company recognized a Right of Use (“ROU”) Leased Asset and a Right of Use (“ROU”) Lease Liability on the lease commencement date. The value of both the ROU asset and ROU liability, at September 30, 2020, was approximately $1,309,000. The Company recognized approximately $45,000 and $135,000 of operating lease expense during the three and nine months ended September 30, 2020, respectively. This expense is included in general and administrative expense.

As of September 30, 2020, future lease liability is as follows:

2020	$	37,000
2021		114,000
2022		121,000
2023		127,000
2024		134,000
Thereafter		776,000
Total	$	1,309,000