NOTE 16 – LEASES

Manoa Innovation Center

The Company entered into an automatically renewable month-to-month lease for office space on August 13, 2010. Under the terms of this lease, the Company must provide a written notice 45 days prior to vacating the premises. Total rent expense under this agreement as amended was $8,989 and $9,100 for the three-months ended March 31, 2020 and 2019, respectively.

Fleet lease

In January 2018, the Company entered into a vehicle lease arrangement with a rental company for three vehicles. The terms of the leases require monthly payments of $1,619 for three years. These leases convert to month-to-month leases in January 2021 unless terminated. The Company terminated one lease in August of 2019, which reduced the monthly payments to $1,002. Total lease expense under this agreement was $3,754 and $5,959 for the three-months ended March 31, 2020 and 2019, respectively.

Right-to-use leased asset and liability

The Company recognized a right-to-use leased asset and liability for the fleet leases. The balance of this right-to-use asset and liability was $9,606 and $30,813 as of March 31, 2020 and 2019, respectively.