LEASES

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

NOTE 6 - LEASES

On September 23, 2020, the Company signed a new two-year lease for its facilities. The base lease is $3,162 and $3,267 per month for years one and two, respectively. There is a leasehold tax applied to the base lease at 12.84%. The Company has the right to terminate the lease with 90 days’ notice. There is no renewal clause contained in the current lease. Upon signing the lease, the Company recognized a lease liability and right of use asset of $74,005 based on the two-year payment stream discounted using an estimated incremental borrowing rate of 4.0%. At June 30, 2022, the remaining lease term is three months over which payments of $9,737 will be paid.

For the three month and six-month periods ended June 30, 2022 and 2021, lease expenses of $10,903 and $10,862, and $21,805 and $21,724, respectively, are included in the following expense classifications on the statement of operations:

	For the three-month period ending June 30,
	2022						2021
	Cost of sales		Operating expenses		Total		Cost of sales		Operating expenses		Total
Base rent pursuant to lease agreement	$	5,397	$	4,248	$	9,645	$	5,396	$	4,248	$	9,644
Variable lease costs		704		554		1,258		682		536		1,218
Total lease costs	$	6,101	$	4,802	$	10,903	$	6,078	$	4,784	$	10,862

	For the six-month period ending June 30,
	2022						2021
	Cost of sales		Operating expenses		Total		Cost of sales		Operating expenses		Total
Base rent pursuant to lease agreement	$	10,793	$	8,495	$	19,288	$	10,793	$	8,495	$	19,288
Variable lease costs		1,408		1,109		2,517		1,363		1,073		2,436
Total lease costs	$	12,201	$	9,604	$	21,805	$	12,156	$	9,568	$	21,724