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PACIFIC HEALTH CARE ORGANIZATION INC
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2019
Q1
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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”) and in accordance with accounting principles generally accepted in the United States (“GAAP”).  Certain information and footnote disclosures normally included in consolidated financial statements have been condensed or omitted in accordance with GAAP rules and regulations.  The information furnished in these interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements.  The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect both the recorded values of assets and liabilities at the date of the condensed consolidated financial statements and the revenues recognized and expenses incurred during the reporting period. These estimates and assumptions affect the Company’s recognition of deferred expenses, bad debts, income taxes, the carrying value of its long-lived assets and its provision for certain contingencies. The reasonableness of these estimates and assumptions is evaluated continually based on a combination of historical information and other information that comes to the Company’s attention that may vary its outlook for the future. While management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s audited financial statements and notes thereto included in its annual report on Form 10-K for the year ended December 31, 2018.  Operating results for the three months ended March 31, 2019, are not necessarily indicative of the results to be expected for the year ending December 31, 2019.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Principles of Consolidation</b></i> — The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  Intercompany transactions and balances have been eliminated in consolidation.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i><b>Basis of Accounting</b></i><b> </b><i>— </i>The Company uses the accrual method of accounting.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.2pt;text-align:justify;"><i><b>Revenue Recognition</b></i> — The Company follows the guidance of Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers (Topic 606).”</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.2pt;text-align:justify;">Topic 606 creates a five-step model to recognize revenue which includes (i) identifying the contract with the customer, (ii) identifying the performance obligations in the contract, (iii) determining the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocating the transaction price to the respective performance obligations in the contract, and (v) recognizing revenue when (or as) the Company satisfies the performance obligation. </p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.2pt;text-align:justify;">The Company derives its revenue from the sale of managed care, bill review, utilization review and medical case management services. These services are billed individually as separate components to our customers. These fees include monthly administration fees, claim network fees, legal support fees, Medicare set-aside fees, lien service fees, workers’ compensation carve-outs, flat rate fees or hourly fees depending on the agreement with the client.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.3pt;text-align:justify;">The Company enters into arrangements for bundled managed care which includes various units of accounting such as network solutions and patient management, including managed care. Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis and are billed separately. The selling price for each unit of accounting is determined using the contract price. When the Company’s customers purchase several products the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management services ratably over the life of the customer contract. Based upon prior experience in managed care, the Company estimates the deferral amount from when the customer’s claim is received to when the customer contract expires. Advance payments from subscribers and billings made in advance are recorded on the balance sheet as deferred revenue.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Accounts Receivables and Bad Debt Allowance</b></i><i> </i>– In the normal course of business the Company extends credit to its customers on a short-term basis.  Although the credit risk associated with these customers is minimal, the Company routinely reviews its accounts receivable balances and makes provisions for doubtful accounts.  The Company ages its receivables by date of invoice.  Management reviews bad debt reserves quarterly and reserves specific accounts as warranted or sets up a general reserve based on amounts over 90 days past due.  When an account is deemed uncollectible, the Company charges off the receivable against the bad debt reserve.  A considerable amount of judgment is required in assessing the realization of these receivables including the current creditworthiness of each customer and related aging of the past-due balances, including any billing disputes.  In order to assess the collectability of these receivables, the Company performs ongoing credit evaluations of its customers’ financial condition. Through these evaluations, the Company may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit rating or bankruptcy.  The allowance for doubtful accounts is based on the best information available to the Company and is reevaluated and adjusted as additional information is received.  We evaluate the allowance based on historical write-off experience, the size of the individual customer balances, past-due amounts and the overall national economy.  At March 31, 2019 and December 31, 2018, bad debt reserves of $28,442 and $28,442, respectively, was a general reserve for certain balances over 90 days past due and for accounts that are potentially uncollectible.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The percentages of the amounts due from major customers to total accounts receivable as of March 31, 2019 and December 31, 2018, are as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1123" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1124" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>9</b></b></p>
</td>
<td id="new_id-1125" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td id="new_id-1126" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1127" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>12</b><b>/3</b><b>1</b><b>/201</b><b>8</b></b></p>
</td>
<td id="new_id-1128" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer A</p>
</td>
<td id="new_id-1129" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1130" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1131" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">31</td>
<td id="new_id-1132" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1133" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1134" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1135" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">27</td>
<td id="new_id-1136" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
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<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer B</p>
</td>
<td id="new_id-1137" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1138" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1139" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">3</td>
<td id="new_id-1140" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1141" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1142" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1143" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1144" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
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<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer C</p>
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<td id="new_id-1145" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1146" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1147" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1148" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1149" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1150" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1151" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">9</td>
<td id="new_id-1152" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
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</table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Significant Customers - </b></i>We provide services to insurers, third party administrators, self-administered employers, municipalities and other industries.  We are able to provide our full range of services to virtually any size employer in the state of California.  We are also able to provide utilization review, medical bill review and medical case management services outside the state of California. </p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the period ended March 31, 2019 and 2018, we had three customers that accounted for more than 10% of our total sales.  The following table sets forth details regarding the percentage of total sales attributable to our significant customers in the past two years:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
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<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1153" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1154" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>9</b></b></p>
</td>
<td id="new_id-1155" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td id="new_id-1156" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1157" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>8</b></b></p>
</td>
<td id="new_id-1158" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer A</p>
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<td id="new_id-1159" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1160" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1161" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">28</td>
<td id="new_id-1162" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1163" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1164" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1165" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">32</td>
<td id="new_id-1166" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer B</p>
</td>
<td id="new_id-1167" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1168" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1169" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">13</td>
<td id="new_id-1170" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1171" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1172" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1173" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">11</td>
<td id="new_id-1174" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer C</p>
</td>
<td id="new_id-1175" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1176" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1177" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1178" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1179" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1180" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1181" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">6</td>
<td id="new_id-1182" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
</table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Leases</b></i> - Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $719,861, lease liabilities for operating leases of $719,861, and a zero cumulative-effect adjustment to accumulated deficit. The Company elected to exclude from its balance sheets recognition of leases having a term of 12 months or less (“short-term leases”). Lease expense is recognized on a straight-line basis over the lease term. See Note 2 for further information regarding the impact of the adoption of ASC 842 on the Company’s financial statements.</p><br/></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Principles of Consolidation</b></i> — The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  Intercompany transactions and balances have been eliminated in consolidation.</p></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><i><b>Basis of Accounting</b></i><b> </b><i>— </i>The Company uses the accrual method of accounting.</p></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.2pt;text-align:justify;"><i><b>Revenue Recognition</b></i> — The Company follows the guidance of Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers (Topic 606).”</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.2pt;text-align:justify;">Topic 606 creates a five-step model to recognize revenue which includes (i) identifying the contract with the customer, (ii) identifying the performance obligations in the contract, (iii) determining the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocating the transaction price to the respective performance obligations in the contract, and (v) recognizing revenue when (or as) the Company satisfies the performance obligation. </p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.2pt;text-align:justify;">The Company derives its revenue from the sale of managed care, bill review, utilization review and medical case management services. These services are billed individually as separate components to our customers. These fees include monthly administration fees, claim network fees, legal support fees, Medicare set-aside fees, lien service fees, workers’ compensation carve-outs, flat rate fees or hourly fees depending on the agreement with the client.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.3pt;text-align:justify;">The Company enters into arrangements for bundled managed care which includes various units of accounting such as network solutions and patient management, including managed care. Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis and are billed separately. The selling price for each unit of accounting is determined using the contract price. When the Company’s customers purchase several products the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management services ratably over the life of the customer contract. Based upon prior experience in managed care, the Company estimates the deferral amount from when the customer’s claim is received to when the customer contract expires. Advance payments from subscribers and billings made in advance are recorded on the balance sheet as deferred revenue.</p></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Accounts Receivables and Bad Debt Allowance</b></i><i> </i>– In the normal course of business the Company extends credit to its customers on a short-term basis.  Although the credit risk associated with these customers is minimal, the Company routinely reviews its accounts receivable balances and makes provisions for doubtful accounts.  The Company ages its receivables by date of invoice.  Management reviews bad debt reserves quarterly and reserves specific accounts as warranted or sets up a general reserve based on amounts over 90 days past due.  When an account is deemed uncollectible, the Company charges off the receivable against the bad debt reserve.  A considerable amount of judgment is required in assessing the realization of these receivables including the current creditworthiness of each customer and related aging of the past-due balances, including any billing disputes.  In order to assess the collectability of these receivables, the Company performs ongoing credit evaluations of its customers’ financial condition. Through these evaluations, the Company may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit rating or bankruptcy.  The allowance for doubtful accounts is based on the best information available to the Company and is reevaluated and adjusted as additional information is received.  We evaluate the allowance based on historical write-off experience, the size of the individual customer balances, past-due amounts and the overall national economy.  At March 31, 2019 and December 31, 2018, bad debt reserves of $28,442 and $28,442, respectively, was a general reserve for certain balances over 90 days past due and for accounts that are potentially uncollectible.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The percentages of the amounts due from major customers to total accounts receivable as of March 31, 2019 and December 31, 2018, are as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1123" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1124" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>9</b></b></p>
</td>
<td id="new_id-1125" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td id="new_id-1126" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1127" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>12</b><b>/3</b><b>1</b><b>/201</b><b>8</b></b></p>
</td>
<td id="new_id-1128" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer A</p>
</td>
<td id="new_id-1129" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1130" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1131" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">31</td>
<td id="new_id-1132" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1133" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1134" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1135" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">27</td>
<td id="new_id-1136" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer B</p>
</td>
<td id="new_id-1137" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1138" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1139" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">3</td>
<td id="new_id-1140" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1141" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1142" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1143" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1144" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer C</p>
</td>
<td id="new_id-1145" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1146" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1147" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1148" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1149" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1150" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1151" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">9</td>
<td id="new_id-1152" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
</table></div>
28442
28442
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Significant Customers - </b></i>We provide services to insurers, third party administrators, self-administered employers, municipalities and other industries.  We are able to provide our full range of services to virtually any size employer in the state of California.  We are also able to provide utilization review, medical bill review and medical case management services outside the state of California. </p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the period ended March 31, 2019 and 2018, we had three customers that accounted for more than 10% of our total sales.  The following table sets forth details regarding the percentage of total sales attributable to our significant customers in the past two years:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1153" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1154" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>9</b></b></p>
</td>
<td id="new_id-1155" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td id="new_id-1156" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1157" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>8</b></b></p>
</td>
<td id="new_id-1158" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer A</p>
</td>
<td id="new_id-1159" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1160" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1161" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">28</td>
<td id="new_id-1162" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1163" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1164" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1165" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">32</td>
<td id="new_id-1166" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer B</p>
</td>
<td id="new_id-1167" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1168" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1169" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">13</td>
<td id="new_id-1170" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1171" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1172" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1173" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">11</td>
<td id="new_id-1174" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer C</p>
</td>
<td id="new_id-1175" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1176" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1177" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1178" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1179" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1180" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1181" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">6</td>
<td id="new_id-1182" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
</table></div>
3
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><i><b>Leases</b></i> - Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $719,861, lease liabilities for operating leases of $719,861, and a zero cumulative-effect adjustment to accumulated deficit. The Company elected to exclude from its balance sheets recognition of leases having a term of 12 months or less (“short-term leases”). Lease expense is recognized on a straight-line basis over the lease term. See Note 2 for further information regarding the impact of the adoption of ASC 842 on the Company’s financial statements.</p></div>
719861
0
<div style="font-family: "Times New Roman", Times, serif; font-size: 10pt; ">
The percentages of the amounts due from major customers to total accounts receivable as of March 31, 2019 and December 31, 2018, are as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1123" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1124" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>9</b></b></p>
</td>
<td id="new_id-1125" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td id="new_id-1126" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1127" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>12</b><b>/3</b><b>1</b><b>/201</b><b>8</b></b></p>
</td>
<td id="new_id-1128" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer A</p>
</td>
<td id="new_id-1129" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1130" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1131" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">31</td>
<td id="new_id-1132" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1133" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1134" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1135" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">27</td>
<td id="new_id-1136" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer B</p>
</td>
<td id="new_id-1137" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1138" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1139" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">3</td>
<td id="new_id-1140" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1141" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1142" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1143" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1144" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer C</p>
</td>
<td id="new_id-1145" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1146" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1147" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1148" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1149" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1150" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1151" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">9</td>
<td id="new_id-1152" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
</table></div>
0.31
0.27
0.03
0.10
0.10
0.09
<div style="font-family: "Times New Roman", Times, serif; font-size: 10pt; ">
During the period ended March 31, 2019 and 2018, we had three customers that accounted for more than 10% of our total sales. The following table sets forth details regarding the percentage of total sales attributable to our significant customers in the past two years:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1153" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1154" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>9</b></b></p>
</td>
<td id="new_id-1155" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
<td id="new_id-1156" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1157" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>3</b><b>/3</b><b>1</b><b>/201</b><b>8</b></b></p>
</td>
<td id="new_id-1158" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 62%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer A</p>
</td>
<td id="new_id-1159" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1160" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1161" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">28</td>
<td id="new_id-1162" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1163" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1164" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1165" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">32</td>
<td id="new_id-1166" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer B</p>
</td>
<td id="new_id-1167" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1168" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1169" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">13</td>
<td id="new_id-1170" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1171" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1172" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1173" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">11</td>
<td id="new_id-1174" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer C</p>
</td>
<td id="new_id-1175" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1176" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1177" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">10</td>
<td id="new_id-1178" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
<td id="new_id-1179" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1180" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1181" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">6</td>
<td id="new_id-1182" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">%</p>
</td>
</tr>
</table></div>
0.28
0.32
0.13
0.11
0.10
0.06
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>NOTE </b><b>2</b><b>- </b><b>OPERATING LEASES</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In July 2015, the Company entered a 79-month lease to lease approximately 9,439 square feet of office space that commenced in September 2015. This office space serves as the Company’s principal executive offices, as well as, the principal offices of our operating subsidiaries. In March 2017, the Company entered a 39-month operating lease for an office copy machine with scanner with monthly payment at $1,723, commencing in April 2017.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 0.1pt;text-align:justify;">Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.</p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The components of lease expense and supplemental cash flow information related to leases for the period are as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1183" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1184" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three Months Ended</b></b></p>
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>March 31, 2019</b></b></p>
</td>
<td id="new_id-1185" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Lease Cost</p>
</td>
<td id="new_id-1186" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1187" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1188" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1189" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Operating lease cost (included in general and administrative in the Company’s condensed consolidated statement of operations)</p>
</td>
<td id="new_id-1190" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1191" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1192" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">66,230</td>
<td id="new_id-1193" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1"> </td>
<td id="new_id-1194"> </td>
<td id="new_id-1195"> </td>
<td id="new_id-1196"> </td>
<td id="new_id-1197"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;"><font style="text-decoration:underline">Other Information</font></p>
</td>
<td id="new_id-1198" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1199" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1200" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1201" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Cash paid for amounts included in the measurement of lease liabilities for the first quarter 2019</p>
</td>
<td id="new_id-1202" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1203" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1204" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">66,230</td>
<td id="new_id-1205" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Weighted average remaining lease term – operating leases (in years)                   </p>
</td>
<td id="new_id-1206" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1207" style="text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3 years</p>
</td>
<td id="new_id-1208" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Average discount rate – operating leases                                              </p>
</td>
<td id="new_id-1209" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1210" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1211" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">5.75</td>
<td id="new_id-1212" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">%</p>
</td>
</tr>
</table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The supplemental balance sheet information related to leases for the period is as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1213" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1214" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>At March 31, 2019</b></b></p>
</td>
<td id="new_id-1215" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Operating leases</p>
</td>
<td id="new_id-1216" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1217" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1218" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1219" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Long-term right-of-use assets</p>
</td>
<td id="new_id-1220" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1221" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td>
<td id="new_id-1222" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">719,861</td>
<td id="new_id-1223" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Short-term operating lease liabilities</p>
</td>
<td id="new_id-1224" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1225" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1226" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">247,472</td>
<td id="new_id-1227" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Long-term operating lease liabilities</p>
</td>
<td id="new_id-1228" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1229" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td>
<td id="new_id-1230" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">472,389</td>
<td id="new_id-1231" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total operating lease liabilities</p>
</td>
<td id="new_id-1232" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1233" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td>
<td id="new_id-1234" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">719,861</td>
<td id="new_id-1235" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
</table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Maturities of the Company’s lease liabilities are as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%; border-bottom: thin solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Year Ending</b></p>
</td>
<td id="new_id-1236" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1237" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Operating Leases</b></b></p>
</td>
<td id="new_id-1238" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2019 (remaining 9 months)</p>
</td>
<td id="new_id-1239" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1240" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1241" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">191,449</td>
<td id="new_id-1242" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2020</p>
</td>
<td id="new_id-1243" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1244" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1245" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">281,803</td>
<td id="new_id-1246" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2021</p>
</td>
<td id="new_id-1247" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1248" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1249" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">257,024</td>
<td id="new_id-1250" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2022</p>
</td>
<td id="new_id-1251" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1252" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1253" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">71,359</td>
<td id="new_id-1254" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total lease payments</p>
</td>
<td id="new_id-1255" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1256" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1257" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">801,635</td>
<td id="new_id-1258" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Less: Imputed interest/present value discount</p>
</td>
<td id="new_id-1259" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1260" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td>
<td id="new_id-1261" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(81,774</td>
<td id="new_id-1262" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Present value of lease liabilities  </p>
</td>
<td id="new_id-1263" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1264" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td>
<td id="new_id-1265" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">719,861</td>
<td id="new_id-1266" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
</table><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Lease expenses were $66,230 and $66,230 during the three months ended March 31, 2019 and 2018, respectively.</p><br/></div>
P79M
9439
P39M
1723
66230
66230
<div style="font-family: "Times New Roman", Times, serif; font-size: 10pt; ">
The components of lease expense and supplemental cash flow information related to leases for the period are as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1183" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1184" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>Three Months Ended</b></b></p>
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>March 31, 2019</b></b></p>
</td>
<td id="new_id-1185" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Lease Cost</p>
</td>
<td id="new_id-1186" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1187" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1188" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1189" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Operating lease cost (included in general and administrative in the Company’s condensed consolidated statement of operations)</p>
</td>
<td id="new_id-1190" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1191" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1192" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">66,230</td>
<td id="new_id-1193" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1"> </td>
<td id="new_id-1194"> </td>
<td id="new_id-1195"> </td>
<td id="new_id-1196"> </td>
<td id="new_id-1197"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;"><font style="text-decoration:underline">Other Information</font></p>
</td>
<td id="new_id-1198" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1199" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1200" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1201" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Cash paid for amounts included in the measurement of lease liabilities for the first quarter 2019</p>
</td>
<td id="new_id-1202" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1203" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1204" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">66,230</td>
<td id="new_id-1205" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Weighted average remaining lease term – operating leases (in years)                   </p>
</td>
<td id="new_id-1206" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1207" style="text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">3 years</p>
</td>
<td id="new_id-1208" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.1pt;margin-top:0pt;text-align:justify;">Average discount rate – operating leases                                              </p>
</td>
<td id="new_id-1209" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1210" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1211" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">5.75</td>
<td id="new_id-1212" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;">%</p>
</td>
</tr>
</table></div>
66230
66230
P3Y
0.0575
<div style="font-family: "Times New Roman", Times, serif; font-size: 10pt; ">
The supplemental balance sheet information related to leases for the period is as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1213" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1214" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b><b>At March 31, 2019</b></b></p>
</td>
<td id="new_id-1215" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Operating leases</p>
</td>
<td id="new_id-1216" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1217" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1218" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1219" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Long-term right-of-use assets</p>
</td>
<td id="new_id-1220" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1221" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td>
<td id="new_id-1222" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">719,861</td>
<td id="new_id-1223" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Short-term operating lease liabilities</p>
</td>
<td id="new_id-1224" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1225" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1226" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">247,472</td>
<td id="new_id-1227" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Long-term operating lease liabilities</p>
</td>
<td id="new_id-1228" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1229" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td>
<td id="new_id-1230" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">472,389</td>
<td id="new_id-1231" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total operating lease liabilities</p>
</td>
<td id="new_id-1232" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1233" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td>
<td id="new_id-1234" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">719,861</td>
<td id="new_id-1235" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
</table></div>
<div style="font-family: "Times New Roman", Times, serif; font-size: 10pt; ">
Maturities of the Company’s lease liabilities are as follows:<br /><br /><table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 10%; margin-left: 10%; width: 80%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;">
<tr style="vertical-align: bottom;">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 81%; border-bottom: thin solid rgb(0, 0, 0);">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Year Ending</b></p>
</td>
<td id="new_id-1236" style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td colspan="2" id="new_id-1237" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">
<p style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><b><b>Operating Leases</b></b></p>
</td>
<td id="new_id-1238" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2019 (remaining 9 months)</p>
</td>
<td id="new_id-1239" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1240" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td>
<td id="new_id-1241" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">191,449</td>
<td id="new_id-1242" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2020</p>
</td>
<td id="new_id-1243" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1244" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1245" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">281,803</td>
<td id="new_id-1246" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2021</p>
</td>
<td id="new_id-1247" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1248" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1249" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">257,024</td>
<td id="new_id-1250" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">2022</p>
</td>
<td id="new_id-1251" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1252" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1253" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">71,359</td>
<td id="new_id-1254" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Total lease payments</p>
</td>
<td id="new_id-1255" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1256" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1257" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">801,635</td>
<td id="new_id-1258" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Less: Imputed interest/present value discount</p>
</td>
<td id="new_id-1259" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1260" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td>
<td id="new_id-1261" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(81,774</td>
<td id="new_id-1262" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px; white-space: nowrap;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);">
<td colspan="1" style="text-align: justify; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Present value of lease liabilities  </p>
</td>
<td id="new_id-1263" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td>
<td id="new_id-1264" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td>
<td id="new_id-1265" style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">719,861</td>
<td id="new_id-1266" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt; white-space: nowrap;"> </td>
</tr>
</table></div>
191449
281803
257024
71359
801635
81774
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; ">
<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>NOTE </b><b>3</b><b> - SUBSEQUENT EVENTS</b></p><br/><p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">In accordance with ASC 855-10 Company management reviewed all material events through the date of issuance and there are no material subsequent events to report.</p><br/></div>