Annual report pursuant to Section 13 and 15(d)

OPERATING LEASE

OPERATING LEASE

12 Months Ended

Dec. 31, 2019

NOTE 6 – OPERATING LEASE

The Company currently occupies office space in Burbank, California. The Company signed a three-year lease starting January 1, 2016. The lease has been extended for an additional three-year term. Current monthly lease payments are $3,742 with yearly increases. The lease required a deposit of $3,500 which was paid on December 10, 2015. The lease is being accounted for under ASU 2016-02 Leases (Topic 842). The company recorded an initial Right of Use of Asset and Lease Obligation of $122,825. As of December 31, 2019, the Company has accrued rent due of $21,653 and a Lease Obligation of $86,438.

Asset	Balance Sheet Classification	December 31, 2019
Operating lease asset	Right of use asset	$	85,077
Total lease asset		$	85,077

Liability
Operating lease liability – current portion	Current operating lease liability	$	40,806
Operating lease liability – noncurrent portion	Long-term operating lease liability		45,632
Total lease liability		$	86,438

Lease obligations at December 31, 2019 consisted of the following:

For the year ended December 31:
2020	$	46,255
2021		47,642
Total payments	$	93,897
Amount representing interest	$	(7,459	)
Lease obligation, net		86,438
Less current portion		(40,806	)
Lease obligation – long term	$	45,632

The lease expense for the year ended December 31, 2019 was $44,908, which consisted of amortization expense of $36,388 and interest expense of $8,520.

The cash paid under this operating lease during the year ended December 31, 2019 was $40,923. At December 31, 2019, the weighted average remaining lease term is 2 years and the weighted average discount rate is 8%