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Leases
 9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases

NOTE 7 – LEASES

 

The Company elected the practical expedient under ASU 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earliest comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at January 1, 2019 but without retrospective application. In addition, the Company elected the optional practical expedient permitted under the transition guidance which allows the Company to carry forward the historical accounting treatment for existing leases upon adoption. No impact was recorded to the beginning retained earnings for Topic 842. The Company has two operating leases for corporate offices. The following table outlines the details:

 

    Lease 1     Lease 2  
Initial Lease Term     December 2017 to December 2021       November 2018 to November 2023  
Renewal Term     January 2021 to December 2024       November 2023 to November 2028  
Initial Recognition of Right to use assets at January 1, 2019   $ 534,140     $ 313,301  
Incremental Borrowing Rate     10 %     10 %

 

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded in the Consolidated Balance Sheet as of September 30, 2019

 

Amounts due within twelve months of September 30      
2019   $ 159,538  
2020     164,299  
2021     169,223  
2022     174,320  
2023     179,552  
Thereafter     259,858  
Total minimum lease payments     1,106,790  
Less: effect of discounting     (314,451 )
Present value of future minimum lease payments     792,339  
Less: current obligations under leases     84,050  
Long-term lease obligations   $ 708,289  

 

For the three-months and nine-months ended September 30, 2019, amortization of assets was $22,658 and $66,598, respectively.

 

For the three-months and nine-months ended September 30, 2019, amortization of liabilities was $18,826 and $55,102, respectively.