Quarterly report pursuant to Section 13 or 15(d)

10. Leases

10. Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  

Note 10 – Leases


During the current quarter, we adopted ASU 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. We lease property under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term.


Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is our incremental borrowing rate, estimated to be 5.5%, as the interest rate implicit in our lease is not readily determinable.


Right-of-use assets are summarized below:


    June 30, 2019
Office lease   $ 196,554  
Less accumulated amortization     (24,442 )
Right-of-use assets, net   $ 172,112  


Operating Lease liabilities are summarized below:


    June 30, 2019
Office lease   $ 183,407  
Less: current portion     (52,486 )
Long term portion   $ 130,921  


Maturity of lease liabilities are as follows:


Six months ended December 31, 2019   $ 30,632  
Year ended December 31, 2020     62,183  
Year ended December 31, 2021     64,048  
Year ended December 31, 2022     43,655  
Total payment     200,518  
Amount representing interest     (17,111 )
Lease Obligation, net   $ 183,407