Lease

9 Months Ended

Sep. 30, 2021

Lease

Note 11. Lease

Note 11. Lease

Beginning on August 1, 2016, the Company leases its headquarters facility under an operating lease agreement that expires on June 30, 2022. The Company has the right to terminate the lease upon six months prior notice after three years of occupancy. Rent expense is $80,000 annually during the first year of the lease term and increases by 1.5% annually thereafter.

Supplemental balance sheet information related to the lease on September 30, 2021 and December 31, 2020 is as follows:

Description	Classification	September 30, 2021		December 31, 2020
Right of Use Asset – Lease, net	Other assets (non-current)	$	61,765	$	120,777
Operating Lease liability – Short-term	Accrued liabilities		63,050		80,258
Operating Lease liability – Long-term	Other long-term liabilities		0		42,347
Total operating lease liability		$	63,050	$	122,605
Discount rate – operating lease					6.0	%