6. OPERATING LEASE LIABILITY

3 Months Ended

Mar. 31, 2021

The Company's executive offices are located at 244 Fifth Avenue 2nd Floor New York, NY 10001 and Vancouver, British Columbia. The total premises in Vancouver are 2,000 square feet and are leased at a monthly rate of $2,500 under a lease agreement between the Company and the Secretary of the Company which expires October 1, 2021. The Company shares the space with AEC, a reporting company under the Securities Exchange Act of 1934. Our major stockholder and officer own approximately 81% of AEC’s outstanding shares of common stock. AEC is responsible for 50% of the rent or $1,250 each month.

The Company's lease does not provide an implicit rate, and therefore the Company uses an estimated incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used incremental borrowing rate of 5% for the calculation of operating leases liabilities.

The following table reconciles the undiscounted future minimum lease under the non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheet as of March 31, 2021:

2021- six months	$	7,500
Total undiscounted future minimum lease payments		7,500
Less: Difference between undiscounted lease payments and discounted lease liabilities		(108	)
Total operating lease liabilities		7,392
Less current portion		(7,392	)
Long-term lease liabilities	$	-0-

Total rent expense under operating leases for the three months ended March 31, 2021 was $3,750, as compared to $3,750 for the three months ended March 31, 2020.

AMANASU TECHNO HOLDINGS CORP 10-Q