RIGHT OF USE ASSETS

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

RIGHT OF USE ASSETS

NOTE 18 RIGHT OF USE ASSETS

The Company entered into two leases for office space and one automobile lease prior to the end of the year ended December 31, 2019 that are classified as right of use assets and lease liabilities. The lease for the Company’s office spaces expire in April 2020 and June 2022. The lease for the automobile expires in June 2021. As the implicit interest rate is not readily identifiable 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 $361,223 for the office leases and $29,037 for the automobile leasing, that are being amortized over the life of the leases.

As of December 31, 2019 and 2018 , the right of use assets associated with future operating leases are as follows:

	2019			2018
Total present value of right of use assets
under lease agreements	$	390,260			114,333
Amortization of right of use assets		(129,469	)		(31,779	)
Total right of use assets as of December 31, 2019	$	260,791			82,554

Total amortization expense related to the right of use assets under the lease agreements was $97,690 and $31,779 for the years ended December 31, 2019 and 2018, respectively.