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Note 4 - Leases
12 Months Ended
Dec. 31, 2016
Notes  
Note 4 - Leases

NOTE 4 – LEASES

 

On December 1, 2015, the Company signed a new lease on their office in Fredericia Denmark, which replaced the prior lease and allowed the Company to move to larger office space (159 square meters) within the same building.  The new rent is DKK 13,184 per month ($1,900) and the security deposit increased to DKK 80,685 ($12,250).  The lease can be terminated with a six month notice, but not before December 1, 2017.  Rent will increase annually on January 1 based on the consumer price index, with a minimum increase of 2% per year.  Effective March 1, 2016, the Company signed Appendix 1 to the Fredericia lease agreement moving the office to a 190 square meter office located on the first floor of the building.  The rent and security deposit were not changed by the Appendix.  Once the Company utilizes the additional 31 square meters, the rent will increase proportionately. 

 

The Company also leased some office space for approximately $875 per month on a month-to-month contract. The Company paid a deposit of approximately $900 in December 2015.  Monthly rent started in January 2016 and ended in March 2016. 

 

On September 30, 2015, the Company assumed the short-term auto lease of a member of management that ended January 8, 2016.  Monthly payments were approximately $435 and the deposit was $2,400.  The Company renewed the auto lease for an additional twelve months, through January 7, 2017 at $350 per month.  Actual payments are in the functional currency.

 

As of December 31, 2016, total lease deposits were approximately $12,250.  Rent expense was $39,727 and $4,826 for year ended December 31, 2016 and for the period ended December 31, 2015, respectively.  Minimum annual lease payments are approximately $23,000, which are all due within one year.