Office Lease

9 Months Ended

Sep. 30, 2021

Note 10– Office Lease

On February 4, 2019, the Company entered into a sublease for office space located in Bannockburn, Illinois, with an unrelated third party. The sublease terminates on May 31, 2022. The sublease requires annual rent of $55,860 for the first year of the sublease, $57,536 for the second year, $59,262 for the third year, and $61,040 for the last year. Rent for the three months ending September 30, 2021 and 2020 was $14,670 and $14,433, respectively. The Company also paid a security deposit of $9,310, which is reflected in Other Assets - Deposits As of September 30, 2021 and December 31, 2020, our right of use asset and related liability was $47,297 and $74,721, respectively.

In determining the present value of our operating lease right-of-use asset and liability, we used a discount rate of 5% (which approximates our borrowing rate). The remaining term on the lease is nine months.

VERONI BRANDS CORP.

Notes to Unaudited Financial Statements

September 30, 2021 and 2020

Note 10– Office Lease (continued)

The annual rent per the sublease is as follows:

Schedule of Annual Rent Sublease


2021	$	14,821
2022		15,260
Sublease, annual rental, total	$	30,072

Veroni Brands Corp. 10-Q