General form of registration statement for all companies including face-amount certificate companies

7. Property and Equipment

v3.21.1
7. Property and Equipment
 12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 7 – Property and Equipment

 

At December 31, 2020 and 2019, property and equipment consisted of the following:

 

    December 31,
2020		     December 31,
2019		  
Warehouse   $ 3,789,773     $ 3,789,773  
Land     731,515       731,515  
Building Improvement     238,666       238,666  
Furniture and fixture     27,631       27,631  
Equipment     48,378       47,064  
Software     1,995       1,995  
Total cost     4,837,958       4,836,644  
Less accumulated depreciation     (345,448 )     (183,206 )
Property and equipment, net   $ 4,492,510     $ 4,653,438  

 

Depreciation expense for the years ended December 31, 2020 and 2019 amounted to $162,242 and $151,670, respectively.

 

The Company purchased a warehouse in Ontario, California in September 2018 and leased an unused portion to a third party. The tenant paid $12,335 as security deposit, shown as other liability in non-current liability.

 

On January 22, 2019, the Company subleased a portion of the unused warehouse and office space to a third party. The Company subleased 16,000 square feet of warehouse and 446 square feet of office space with base rent at $12,335 per month and $12,335 security deposit. The lease is for three years commencing February 15, 2019 and monthly rent to increase $0.02 per square foot each year.

 

On October 19, 2020, the Company subleased 3,000 feet of the warehouse and one office space for eight months commencing December 1, 2020 with option to extend the lease to twelve months. The monthly lease payment is $2,400 with a $4,800 security deposit.