XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.2
LEASE OBLIGATION
 6 Months Ended
Jun. 30, 2022
Lease Obligation  
LEASE OBLIGATION

NOTE 6 LEASE OBLIGATION

 

The Company leases office and showroom space pursuant to a sublease that expires in February 2027. In April 2022, the Company entered into the sublease and as a result recognized a right-of-use asset and a liability of $1,428,764.

 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate of 5% to determine the present value of the lease payments at the measurement date.

 

Supplemental information related to the lease and future minimum lease payments as of June 30, 2022 are as follows:

 

   June 30, 2022 
Cash paid for operating lease liabilities  $27,813 
Right-of-use assets obtained in exchange for new operating lease obligations   1,428,764 
Remaining lease term, months   58 
Discount rate   5%
Fixed rent payment  $26,893 
Lease – Depreciation expense  $44,124 
      
2022 –Remaining Period  $94,732 
2023   279,809 
2024   304,227 
2025   330,198 
2026   357,840 
2027   61,958 
Total  $1,428,764