OPERATING LEASES

3 Months Ended

Dec. 31, 2020

NOTE 8 – OPERATING LEASES

The Company leases a lot which is located in Oceano and is leased at $3,421 per month. The lease has converted to a month-to-month lease; however, the lessor is considering a long-term renewal at this time. As of the period ending December 31, 2020, the County is working on the lot. As a result, this lease payment is not being made at this time and will be resumed once the County completes their work.

The company has a five-year lease obligation for a copier. Rental expense under this operating lease is $384 per month. Future minimum lease payments under this obligation are as follows:

For the Twelve Months Ending December 31,
2020	$	4,608
2021		4,608
2022		768
	$	9,984

Rent expense under these agreements was $11,967 and $1,242 for the three months ended December 31, 2020 and 2019, respectively.