Leases

12 Months Ended

Dec. 31, 2020

Disclosure Text Block [Abstract]

Leases

Note 4. Leases

On January 1, 2019, the Company adopted FASB ASU No. 2016-02, “Leases” (Topic 842) (the “Lease Standard”), a new standard which requires all leases with terms longer than 12 months be recognized by the lessee on its balance sheet as a right-of-use lease asset and a corresponding lease liability, including leases currently accounted for as operating leases, and key information about leasing arrangements to be disclosed. 

The Company adopted the Lease Standard under the alternative transition method permitted by ASU 2018-11. This transition method allowed the Company to initially apply the requirements of the Lease Standard at the adoption date, versus at the beginning of the earliest period presented. The Company elected the transition package of practical expedients, which permits not separating lease and non-lease components for all of its leases and the short-term lease recognition exemption for all of its leases that qualify; however, it did not elect the use of hindsight practical expedient.

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 copy machine in the office as an operating lease and a financing lease, respectively, and recorded related right-of-use lease assets and lease liabilities accordingly. As of December 31, 2020 and 2019, the Company’s consolidated balance sheets included a right-of-use lease asset of $222,445 and $112,387 for the office space and $5,582 and $13,025 for the copy machine, respectively. Lease liabilities in the Company’s consolidated balance sheets as of December 31, 2020 and 2019 included corresponding lease liabilities of $222,441 and $113,559 for the office space and $6,149 and $13,665 for the copy machine, respectively.

The following represent 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
Contractual cash payments for the remaining lease term as of December 31, 2020:
2021	$	133,300		$	6,408
2022		111,083			-
Total	$	244,383		$	6,408
Discount rate applied		10	%		10	%
Remaining lease term (months) as of December 31, 2020		22			9
Right-of-use lease asset:
Right-of-use lease asset, January 1, 2019	$	235,497		$	20,468
Less: reduction/amortization		123,110			7,443
Right-of-use lease asset, December 31, 2019		112,387			13,025
Add: new lease extension		240,727			-
Less: reduction/amortization		130,670			7,443
Right-of-use lease asset, December 31, 2020	$	222,445		$	5,582
Lease liability:
Lease liability, January 1, 2019	$	235,497		$	20,468
Less: repayments		121,938			6,803
Lease liability, December 31, 2019		113,559			13,665
Add: new lease extension		240,727			-
Less: repayments		131,845			7,516
Lease liability, December 31, 2020	$	222,441		$	6,149
Lease expenses for the year ending December 31, 2019:
Lease expense	$	141,191		$	-
Amortization expense		-			7,443
Interest expense		-			1,741
Total	$	141,191		$	9,184
Lease expenses for the year ending December 31, 2020:
Lease expense	$	139,876		$	-
Amortization expense		-			7,443
Interest expense		-			1,028
Total	$	139,876		$	8,471