Lease Liabilities

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lease Liabilities

10. 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 $2,221. 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, beginning 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 three month ended March 31, 2021 as follows:      

	2021
Right-of-use asset	$	32,757
Current lease liability	$	24,485
Long-term lease liability	$	8,272

The components of lease expense are as follows:

	March 31, 2021		March 31, 2020
Amortization of right-of-use	$	5,749	$	22,164
Interest on lease liability	$	915	$	4,494
Total lease cost	$	6,664	$	26,658

Maturities of lease liability are as follows:

Future minimum lease payments as of March 31, 2021,

2021		19.994
2022		15,551
Total future minimum lease payments		35.545
Less: amount representing interest		(2.787	)
Present value of future payments		32,758
Current portion		24,485
Long term portion	$	8,272