Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Operating Lease

Note 5 - Operating Lease
3 Months Ended
Mar. 31, 2022
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 and cash paid under this operating lease was $25,918 during the same period.


During the three months ended March 31, 2021, the Company determined that it was unlikely to collect the lease deposit and recognized an asset writeoff expense of $3,500. There were no other lease expenses or payments during the period. There was no lease expense for the period ended March 31, 2022.