NOTE 4. PREPAID EXPENSES

Prepaid expenses consisted of the following:

On May 31, 2022, the Company entered into a new office facility lease agreement for a 12-month term beginning July 1, 2022 through June 30, 2023 with a monthly base rent of $15,736. The lease agreement required a deposit equivalent to one month’s base rent to be held by the lessor for the term of the lease.

On January 1, 2023, the Company entered into a 6-month agreement for investor relations services in exchange for the issuance of 225,000 common shares and 225,000 warrants to purchase shares of common stock at $1.35 per share. The shares and warrants had an aggregate fair value of $373,981 on the date of issuance which is recognized over the period of service. The Company recorded $186,991 of professional services expense related to the agreement for the three-month period ending March 31, 2023.