Leases

6 Months Ended

Jun. 30, 2021

Leases

Leases

Note 9. Leases

Our Company conducts its operations in leased facilities under a non-cancelable operating lease expiring in 2024.

Due to the adoption of the new lease standard under the optional transition method which allows the entity to apply the new lease standard at the adoption date, our Company has capitalized the present value of the minimum lease payments commencing January 1, 2019, using an estimated incremental borrowing rate of 6%. The minimum lease payments do not include common area annual expenses which are considered to be non-lease components.

As of January 1, 2019 the operating lease right-of-use asset and operating lease liability amounted to $241,100 with no cumulative-effect adjustment to the opening balance of accumulated deficit.

There are no other material operating leases. Our Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases.

Total lease expense under operating leases for the three and six months ended June 30, 2021 was $13,400 and $26,700, respectively. Total lease expense under operating leases for the three and six months ended June 30, 2020 was $13,400 and $26,700, respectively.

Maturities of lease liabilities are as follows:

	Operating Leases
Year ending December 31
2021	$	26,800
2022		54,600
2023		56,200
2024		18,900
Total lease payments		156,500
Less imputed interest		(18,100	)
Total	$	138,400