Operating Lease Obligations

3 Months Ended

Mar. 31, 2023

Operating Lease Obligations

Operating Lease Obligations

Note 8 – Operating Lease Obligations

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate.

The Company leases its corporate office space under an operating lease that expires in 2023. The Company accounts for this lease under the provisions of ASC 842 Leases. As of December 31, 2022, EVmo has closed out the lease for the facility located at 195 S. Robertson Blvd, Beverly Hills, CA 90211 and relocated to 2301 N. Sepulveda Blvd, Manhattan Beach, CA 90266. The current lease of the facility expires within 12 months and is not subject to ASC 842 due to the short-term nature of the lease. As of March 31, 2023, there are not right of use facility lease assets or obligations under ASC 842 rules.

Remaining Lease obligations at March 31, 2023 consisted of the following:

Years Ending December 31,
2023	$	144,000
2024		-
Total payments		144,000
Less: imputed interest		(0	)
Total obligation		144,000
Less: current portion		(144,000	)
Non-current capital leases obligations	$	0

The lease expense for the three months ended March 31, 2023 was $64,000. The cash paid under operating leases for the three months ended March 31, 2023 was $64,000.