Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14 – Commitments and Contingencies

Contingencies

●	From time to time, the Company may be involved in litigation or disputes relating to claims arising out of its operations in the normal course of business. As of September 30, 2020, the Company is not involved in any such litigation or disputes.

Commitments

●	*Leases*

The Company entered into a non-cancelable operating lease for its United Kingdom office in the city of Hull (United Kingdom) on August 29, 2019, for a period of six years amounting to a rental of GBP 1,000 or approximately $1,290 per month.

In adopting ASC Topic 842, Leases, the Company has elected the package of practical expedients which permits it not to reassess its prior conclusions about lease identifications, lease classifications and initial direct costs under the new standard. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 months or less. Upon adoption of this ASC, the Company recorded right-of-use leased asset and operating lease liability of $79,129. At September 30, 2020, the balance of the right-of-use leased asset and operating lease liability was $64,020.

The significant assumptions used to determine the present value of the operating lease liability was a discount rate of 6% which was based on the Company’s estimated incremental borrowing rate.

At September 30, 2020, the right-of-use leased asset (ROU) is summarized as follows:

		September 30, 2020
Office lease right-of-use asset		$	79,129
Less: Accumulated amortization			(13,021	)
Less: Translation rate difference			(2,088	)
Balance of ROU asset as of September 30, 2020		$	64,020

At September 30, 2020, operating lease liability is summarized as follows:

		September 30, 2020
Lease liability related to office lease right-of-use asset		$	79,129
Less: Lease reduction			(13,021	)
Less: Translation rate difference			(2,088	)
Less: Current portion of operating lease liability			(13,019	)
Long term operating lease liability as of September 30, 2020		$	51,001

The following is a schedule, by years, of the future minimum lease payments as of September 30, 2020 required under the non-cancelable operating lease:

12 months period ended September 30,		Operating Lease
2021		$	15,501
2022			15,501
2023			15,501
2024			15,501
2025			14,209
Total minimum lease payments		$	76,213
Less: Discount to fair value			(12,193	)
Total Operating Lease Liability at September 30, 2020		$	64,020

Total rent expense for the nine months ended September 30, 2020 and 2019 was $11,439 and $21,375, respectively.