NOTE 4 – LEASES

As of September 30, 2022, the Company has one lease for a copier that meets the provisions of ASU 2016-02 which requires the recognition of a right-of-use asset representing the rights to use the underlying leased asset for the lease terms with an offsetting lease liability. Operating lease expense is recognized on a straight-line basis over the lease term. During the three and nine months ended September 30, 2022, the Company recorded $438 and $1,314, respectively, and $438 and $1,314, respectively, for the three and nine months ended September 30, 2021 as operating lease expense which is included in general and administrative expenses on the unaudited condensed statements of operations. As of September 30, 2022 and December 31, 2021, the unamortized right-of-use assets resulting from the lease was $2,736 and $3,858, respectively, and the lease liabilities were $2,786 and $3,931, respectively.

The term of the lease is 60 months with no extension or buy-out provision at lease end. The monthly lease payments are $149. The Company utilized an incremental borrowing base of 7.5% to determine the present value of the lease liability associated with this copier lease.

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under the noncancelable copier operating lease to the total operating lease liabilities recognized on the unaudited condensed balance sheet as of September 30, 2022:

 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS