Note 11 – Operating Lease Liability

The Company leases its facility in East Rutherford, NJ with monthly payments of $18,467 which expires in August 2021 and includes a renewal option for an additional five years. The Company also has an operating lease for office equipment with monthly payments of $523 which expires in May 2021.

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used incremental borrowing rates as of April 1, 2019 for operating leases that commenced prior to that date. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. The Company used a discount rate of 6.25% at December 31, 2020.

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of December 31, 2020:

Remaining payments 2021	$	56,970
2022		93,381
Total undiscounted future minimum lease payments		150,351
Less: Difference between undiscounted lease payments and discounted lease liabilities		(3,444	)
Present value of net minimum lease payments		146,907
Less current portion		(146,907	)
Operating lease liabilities – long-term	$	-0-

Total rent expense for the three and nine months ended December 31, 2020 was $90,920 and $272,725, respectively, as compared to $97,664 and $269,282 for the three and nine months ended December 31, 2019, respectively.