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Lease Liabilities

12 Months Ended

Dec. 31, 2019

Lease Liabilities - Schedule Of Future Minimum Lease Payments

19. Lease Liabilities

During the year ended December 31, 2019, the Company signed a lease agreement for warehouse space to commence on August 1, 2019 and end on July 31, 2022 with monthly lease payments of $2,221. The Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-of-use asset at the date of initial application, beginning January 1, 2019. The lease liability is measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 10%. The Company has measured the right-of-use asset at an amount equal to the lease liability.

The Company’s right-of-use asset for the year ended December 31, 2019 is as follows:

	2019
Right-of-use asset	$	60,125

Current lease liability	$	22,000
Long-term lease liability	$	39,185

The components of lease expense are as follows:

	2020
Amortization of right-of-use	$	21,619
Interest on lease liability	$	5,039
Total lease cost	$	26,658

Maturities of lease liability are as follows:

Future minimum lease payments as of December 31, 2019,

2020	$	26,658
2021		26,658
2022		15,551
Total future minimum lease payments		68,867
Less: amount representing interest		(7,682	)
Present value of future payments		61,185
Current portion		22,000
Long term portion	$	39,185