LEASES

6 Months Ended

Jun. 30, 2021

LEASES

LEASES

9.     LEASES

In June 2020, we amended our office lease agreement and the term has been extended through July 2022. During the extended term, our rental payments will be approximately $4,200 per month. We had previously amended the office lease to extend through July 2021. Our facility lease is our only existing lease as of June 30, 2021 and is classified as operating lease.

The discount rate used in the calculation of our lease liability is approximately 20%, which is based on our estimate of the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment as the lease does not provide an implicit rate.

The following table summarizes the Company’s recognition of its operating lease:

	June 30, 2021
Assets
Operating lease right-of-use asset	$	48,962
Total lease assets	$	48,962
Liabilities
Current
Current portion of operating lease liability	$	45,043
Non-current
Operating lease liability		4,172
Total lease liabilities	$	49,215

Rent expense, consisting of minimum operating lease payments and variable lease payments for pass through items such as common area maintenance and real estate taxes for the six months ended June 30, 2021 and 2020 is recorded as general and administrative expense and consisted of the following:

	2021		2020
Operating lease cost	$	24,542	$	22,891
Variable lease costs		267		-
Total lease costs	$	24,809	$	22,891

A maturity analysis of our operating lease minimum lease payments follows:

2021	$	25,452
2022		29,694
Total		55,146
Discount factor		(5,931)
Total lease liability	$	49,215