Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE

OPERATING LEASE

3 Months Ended

Mar. 31, 2020

NOTE 5 – 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 $3,855 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 March 31, 2020, the Company has accrued rent due of $21,653 and a Lease Obligation of $76,540.


Asset	Balance Sheet Classification	March 31, 2020		December 31, 2019
Operating lease asset	Right of use asset	$	75,175	$	85,077
Total lease asset		$	75,175	$	85,077

Liability
Operating lease liability – current portion	Current operating lease liability	$	41,976	$	40,806
Operating lease liability – noncurrent portion	Long-term operating lease liability		34,564		45,632
Total lease liability		$	76,540	$	86,438

Lease obligations at March 31, 2020 consisted of the following:


For the year ended December 31:
2020	$	34,691
2021		47,644
Total payments	$	82,335
Amount representing interest	$	(5,795)
Lease obligation, net		76,540
Less current portion		(41,976)
Lease obligation – long term	$	34,564

The lease expense for the three months ended March 31, 2020 was $11,567, which consisted of amortization expense of $9,898 and interest expense of $1,666.

The lease expense for the three months ended March 31, 2019 was $11,567, which consisted of amortization expense of $8,827 and interest expense of $2,400.

The cash paid under this operating lease during the three months ended March 31, 2020 was $11,564. At March 31, 2020, the weighted average remaining lease term is 1.75 years and the weighted average discount rate is 8%.