Right of Use Assets

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

RIGHT OF USE ASSETS

10. RIGHT OF USE ASSETS

The Company entered into one lease for office space and one automobile lease prior to the quarter ended March 31, 2019 that are classified as right of use assets and lease liabilities. The lease for the Company's office space expires April 2020. The lease for the automobile expires in June 2021. In accordance with ASU 2016-02, the Company calculated the present a value of the leases using the average commercial real estate interest rate of 5.50% at the commencement of the office leases and the interest of 2.99% for the automobile lease. Applying the commercial rate, the Company calculated the present value of $87,445 for the office lease and $32,195 for the automobile leasing, that is being amortized over the life of the leases.

As of March 31, 2019, the right of use assets associated with future operating leases are as follows:

Total present value of right of use assets under lease agreements	$	119,640
Amortization of right of use assets		(49,173	)
Total right of use assets as of March 31, 2019	$	70,467

The right of use assets were amortized approximately $4,554 per month. Total amortization expense related to the right of use assets under the lease agreements was $13,662 and $0 for the quarters ended March 31, 2019 and 2018, respectively.

Future amortization of the right of use assets as of March 31, 2019 are as follows:

2020	$	54,162
2021		13,470
2022		2,835
	$	70,467