Lease Liabilities

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Lease Liabilities

7. Lease Liabilities

During the year ended December 31, 2019, the Company signed a lease agreement for warehouse space to commence on August 1, 2019 and end on July 31, 2022 with monthly lease payments of $2,222. The Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-of-use asset at the date of initial application, being January 1, 2019. The lease liability is measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 10%. The Company has measured the right-of-use asset at an amount equal to the lease liability.

The Company’s right-of-use asset for the nine-months ended September 30, 2020 and December 31, 2019 are as follows:

	September 30, 2020		December 31, 2019
Right-of-use asset	$	44,115	$	60,125
Current lease liability	$	23,295	$	22,000
Long-term lease liability	$	20,819	$	39,185

The components of lease expense are as follows:

	September 30, 2020		September 30, 2019
Amortization of right-of-use	$	16,010		3,296
Interest on lease liability	$	3,983		1,212
Total lease cost	$	19,993		4,508

Maturities of lease liability are as follows:

Future minimum lease payments as of September 30, 2020:

2020	$	6,665
2021		26,658
2022		15,551
Total future minimum lease payments		48,874
Less: amount representing interest		(4,760	)
Present value of future payments		44,114
Current portion		23,295
Long term portion	$	20,819