Leases

9 Months Ended

Sep. 30, 2020

Disclosure Text Block [Abstract]

Leases

Note 4. Leases

The Company classifies a lease for its office space at 29 Emmons Drive, Suite B-10 in Princeton, New Jersey and a lease for a copier machine in the office as an operating lease and a financing lease, respectively, and records related right-of-use lease assets and lease liabilities accordingly. Pursuant to an amendment executed on July 7, 2020, the lease has been extended to October 2022.  The current rent of $11,883 per month, or approximately $23.00 per square foot will be reduced to $21.50 per square foot, making the monthly payment $11,108 starting in November 2020 for the remainder of the two year lease extension. Our office space is sufficient to satisfy our current needs.  As of September 30, 2020, the Company’s consolidated balance sheet included a right-of-use lease asset of $252,394 for the office space and $7,443 for the copier machine. Lease liabilities in the Company’s consolidated balance sheet included corresponding lease liabilities of$252,507 and $8,099 respectively. During the nine months ended September 30, 2020, the Company recognized lease expense of $105,893 for the operating lease, in addition to amortization expense of $5,582 and interest expense of $842 for the financing lease in the Company’s consolidated statement of operations.  

The following represents a reconciliation of contractual lease cash flows to the right-of-use lease assets and liabilities recognized in the financial statements:

		Operating Lease			Financing Lease
Right-of-use lease asset:
Right-of-use lease asset, January 1, 2020	$	112,387		$	13,025
Extended lease terms		240,727
Reduction/amortization		(100,720	)		(5,582	)
Right of use lease asset, September 30, 2020	$	252,394		$	7,443
Lease liability:
Lease liability, January 1, 2020	$	113,559		$	13,665
Extended lease terms		240,727
Repayments		(101,779	)		(5,566	)
Lease liability, September 30, 2020	$	252,507		$	8,099
Lease expense for the nine months ended September 30, 2020:
Lease expense	$	105,893		$	-
Amortization expense		-			5,582
Interest expense		-			842
Total	$	105,893		$	6,424
Contractual cash payments for the remaining lease term as of September 30, 2020:
2020	$	34,100		$	2,136
2021		133,300			6,408
2022		111,083			-
Total	$	278,483		$	8,544
Remaining lease term (months) as of September 30, 2020		25			12