Annual report pursuant to Section 13 and 15(d)

Note 5 - Operating Lease

Note 5 - Operating Lease
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]



The Company previously occupied office space in Burbank, California. The Company signed a three-year lease starting January 1, 2016. The lease was then extended for an additional three-year term. Upon adoption of ASU 2016-02 Leases (Topic 842),  the Company recorded an initial Right of Use of Asset and Lease Obligation of $122,825.


On November 1, 2020, the lease was amended to reduce the monthly lease payment to $1,750. In addition, the lessor agreed to forgive all past due accrued rent. As a result, the Company recognized a gain on the forgiveness of debt of $34,280.


On November 13, 2020, the Company and lessor assigned the lease for the office space in Burbank to two of its then Directors, Sanford Lang and Martin Goldrod, relieving the Company of any further obligation under the lease.


The lease expense for year ended December 31, 2020 was $34,691 which consisted of amortization expense of $30,297 and interest expense of $4,394, and cash paid under this operating lease was $25,918 during the same period.