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Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 9. Commitments and Contingencies

 

We lease office space under a non-cancelable operating lease which expires on March 31, 2023. Our periodic lease cost and operating cash flows were $19,818 and $19,813 for the three months ended September 30, 2021 and 2020, respectively. Our periodic lease cost and operating cash flow were $59,489 and $59,657 for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, our right of use asset and related liability was $102,525 and $111,180.

 

 

Barfresh Food Group Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

 

In determining the present value of our operating lease right-of-use asset and liability, we used a 10% discount rate (which approximated our borrowing rate). The remaining term on the lease is 3 years.

 

The following table presents the future operating lease payment as of September 30, 2021:

 

 

      
2021 (three months remaining)   19,648 
2022   80,361 
2023   20,238 
Total Lease payments   120,247 
Less: imputed interest   (9,067)
Total lease liability  $111,180 

 

From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently the defendant in one legal proceeding for an amount less than $100,000. Our legal counsel and management believe a material unfavorable outcome to be remote.