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LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

7. LEASES

In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases with terms of more than twelve months. The Company adopted ASU No. 2016-02, as amended, effective January 1, 2019. We recognized a ROU asset and a corresponding lease liability measured based on the present value of the future minimum lease payments utilizing our incremental borrowing rate as the basis for our computations. As of January 1, 2019, we recognized right to use assets in the amount of $259,358 and a corresponding liability. The asset is being amortized over the life of the lease agreement. As of June 30, 2019, the value of the asset amounted to $188,624. The adoption of the guidance did not have a material impact on our Statement of Operations or Statement of Cash flows.

The ROU represents our right to utilize the corresponding asset for the lease term and the related lease liability translates into an obligation to related to the lease payments. The operating lease liability as of June 30, 2019 amounted to $193,264 of which the short-term value amounted to $142,778 and the long-term portion was $50,516. Company entered into an office lease with a related party effective October 2015. The monthly rent amounts to $12,452 per month until October 2019 and then increases to $12,826 per month until the termination of the lease in October 2020. As of June 30, 2019, the remaining lease term is 16 months and the discount rate is 5%. Future annual minimum cash payments required under this operating type lease as of June 30, 2019 are as follows:

Future Minimum Lease Payments
2019		$	75,461
2020			128,259
Total Minimum Lease Payments		$	203,720
Less: Amount representing interest			(10,424	)
Present value of lease liabilities		$	193,296
Less Current Portion			142,778
Long-Term Portion			50,516

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- References

No definition available.

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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