NOTE 7 - COMMITMENTS AND CONTINGENCIES Employment agreement On December 20, 2017, the Company entered into a five-year employment agreement with Nicholas Campanella, Chief Executive Officer. Under the terms of the agreement, the Company is required to pay a base compensation of $180,000 annually, subject to increases in cost of living and performance bonuses as awarded by the Board of Directors. After 5 years, the agreement is automatically renewed for an additional two years unless terminated by either party. As part of the agreement Mr. Campanella opted to defer, with no interest, the receipt of compensation under the agreement until the Company has the funds to pay its obligation. At September 30, 2019 and December 31, 2018, the Company had accrued compensation of $727,505 and $631,166, respectively, and recorded the related expenses in general and administrative on the accompanying condensed consolidated statements of operations. Leases During March 2017, the Company entered into a five-year lease agreement. Under the terms of the agreement, the Company is obligated to pay monthly rent payments starting at $3,556 and escalating over the life of the lease. The Company entered into a lease in February 2019 for the rental of a 48,167 square foot space in Rhode Island to be used for the Companys MedRecycler operations. The lease has a term of 123 months commencing on March 1, 2019, requiring annual rental payments totaling $144,501 for the first year, increasing annually to $258,930 in the final year. The lease also requires the Company to pay a portion of the buildings common area maintenance. The Company recorded a right-to-use asset and corresponding obligation equal to the present value of the required lease payments using a discount rate of 12% based on the Companys incremental borrowing rate. The following is a schedule showing the future minimum lease payments under leases for the next five years and the present value of the minimum lease payments as of September 30, 2019. Remainder of 2019 $ 118,749 2020 243,249 2021 250,317 2022 217,361 2023 215,797 Thereafter 1,286,696 Total minimum lease payments 2,332,169 Less: Amount representing interest (1,017,664 ) Present value of minimum lease payments $ 1,314,505 For the nine months ended September 30, 2019, lease expense was approximately $34,881 inclusive of short-term leases. The related lease balance included in the condensed consolidated balance sheet as of September 30, 2019 were as follows: Assets: Operating lease right-of use asset $ 1,281,713 Liabilities: Lease liability  current portion $ 84,067 Lease liability  long-term portion 1,260,126 Total operating lease liabilities $ 1,344,193