Right of Use Assets

6 Months Ended

Jun. 30, 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 June 30, 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. As the implicit interest rate is not readily indentifiable in the leases, 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 June 30, 2019, the right of use assets associated with future operating leases are as follows:

Total present value of right to use assets under lease agreements	$	119,640
Amortization of right of use assets		(62,665	)
Total right of use assets as of June 30, 2019	$	56,975

Total amortization expense related to the right of use assets under the lease agreements was $25,579 and $0 for the six-month periods ended June 30, 2019 and 2018, respectively.