LEASE LIABILITY

9 Months Ended

Sep. 30, 2023

Lease Liability

LEASE LIABILITY

5. LEASE LIABILITY

The Company entered into an operating lease for office premises. The lease term is fixed for 2 years. The Company adopted ASC 842, using the modified-retrospective approach as discussed in Note 3, and as a result, recognized a right-of-use asset and a lease liability. The Company uses 1.75% rate to determine the present value of the lease payments.

The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets.

The consolidated balance sheet allocation of assets and liabilities related to operating lease is as follows:

	Consolidated Balance	As of
	Sheets Caption	September 30, 2023		December 31, 2022
Assets	Operating lease right-of-use assets	$	–	$	9,046
Liabilities:
Current	Operating lease liability – current	$	–	$	9,046
Non-current	Operating lease liability – non-current		–		–
Total lease liabilities		$	–	$	9,046

For the nine months ended September 30, 2023 and 2022, the Company recorded lease expenses of $6,725 and $4,978 respectively.