NOTE 17 – LEASES

Office lease

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 $9,255 and $8,989 for the three-months ended March 31, 2021 and 2020, 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 required monthly payments of $1,619 for three years. The Company terminated one lease in August of 2019, which reduced the monthly payments to $1,002. The Company terminated the remaining two leases in January 2021.

Total lease expense under this agreement was $1,783 and $3,754 for the three-months ended March 31, 2021 and 2020, respectively.

Right-of-use leased asset and liability

As a result of the adoption of ASU No. 2016-02, Leases, on January 1, 2019, the Company recognized a right-of-use leased asset and liability for the Fleet Leases. There was no balance of this right-of-use asset and liability as of March 31, 2021. The balance of this right-of-use asset and liability was $962 as of December 31, 2020.