IA Energy 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 13, 2020
Document And Entity Information
Entity Registrant Name	IA Energy Corp.
Entity Central Index Key	0001673431
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	true
Elected Not To Use the Extended Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		36,603,800
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity File Number	333-220706
Entity Shell Company	false
Entity Interactive Data Current?	Yes

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 612	$ 1,128
TOTAL CURRENT ASSETS AND TOTAL ASSETS	612	1,128
CURRENT LIABILITIES
Accounts payable, related party	19,500	15,000
Loan payable, related party	190,650	96,750
Total Current Liabilities	210,150	111,750
TOTAL LIABILITIES	210,150	111,750
STOCKHOLDERS' EQUITY
Preferred stock	0	0
Common stock	3,660	3,650
Additional paid-in capital	5,758,240	5,748,250
Accumulated deficit	(5,971,438)	(5,862,522)
Total Stockholders' Equity	(209,538)	(110,622)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 612	$ 1,128

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred Stock, shares issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	36,503,800	36,503,800
Common Stock, shares outstanding	36,503,800	36,603,800

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
NET REVENUES	$ 0	$ 0	$ 0	$ 0
OPERATING EXPENSES
Consulting and business development (including stock based compensation of $10,000 and $829,167, respectively)	15,000	10,000	62,000	897,167
Professional and accounting fees	6,510	3,361	40,827	20,102
Other selling, general and administrative	2,600	1,710	6,089	5,338
Total Operating Expenses	24,110	15,071	108,916	922,607
LOSS FROM OPERATIONS	(24,110)	(15,071)	(108,916)	(922,607)
OTHER INCOME (EXPENSES)
NET LOSS	$ (24,110)	$ (15,071)	$ (108,916)	$ (922,607)
Net loss per common share - basic and diluted	$ 0	$ 0	$ 0	$ (0.03)
Weighted average common shar outstanding - basic and diluted	36,603,800	36,503,800	36,601,969	36,452,329

Statements of Operations (Paren

Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Stock based compensation	$ 0	$ 829,167	$ 0	$ 10,000

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (108,916)	$ (922,607)
Changes in operating assets and liabilities:
Stock-based compensation	10,000	829,167
Accounts payable, related party	4,500	4,500
Net Cash Used by Operating Activities	(94,416)	(88,940)
CASH FLOWS FROM INVESTING ACTIVITIES	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	0	100,000
Proceeds from related party loans	93,900	38,750
Payments on related party loans	0	(50,000)
Net Cash Provided by Financing Activities	93,900	88,750
NET INCREASE (DECREASE) IN CASH A CASH EQUIVALENTS	(516)	(190)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,128	530
CASH AND CASH EQUIVALENTS, END OF PERIOD	612	340
Cash Payments For:
Interest	0	0
Taxes	$ 0	$ 0

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock	Additional Paid-In Capital	Deferred Stock-based Compensation	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2018	36,303,800
Beginning balance, value at Dec. 31, 2018	$ 3,630	$ 5,648,270	$ (829,167)	$ (4,915,203)	$ (92,470)
Common stock issued for services, shares	200,000
Common stock issued for services, value	$ 20	$ 99,980			100,000
Expense recognition of deferred stock-based compensation			829,167		829,167
Net loss				$ (876,661)	$ (876,661)
Ending balance, shares at Mar. 31, 2019	36,503,800
Ending balance, value at Mar. 31, 2019	$ 3,650	$ 5,748,250		$ (5,791,864)	$ (39,964)
Beginning balance, shares at Dec. 31, 2018	36,303,800
Beginning balance, value at Dec. 31, 2018	$ 3,630	$ 5,648,270	$ (829,167)	$ (4,915,203)	$ (92,470)
Net loss					$ (922,607)
Ending balance, shares at Sep. 30, 2019	36,503,800
Ending balance, value at Sep. 30, 2019	$ 3,650	$ 5,748,250		$ (5,837,810)	$ (85,910)
Beginning balance, shares at Mar. 31, 2019	36,503,800
Beginning balance, value at Mar. 31, 2019	$ 3,650	$ 5,748,250		$ (5,791,864)	$ (39,964)
Common stock issued for services, shares
Common stock issued for services, value
Expense recognition of deferred stock-based compensation
Net loss				$ (30,875)
Ending balance, shares at Jun. 30, 2019	36,503,800
Ending balance, value at Jun. 30, 2019	$ 3,650	$ 5,748,250		$ (5,822,739)	$ (70,839)
Common stock issued for services, shares
Common stock issued for services, value
Expense recognition of deferred stock-based compensation
Net loss				$ (15,071)	$ (15,071)
Ending balance, shares at Sep. 30, 2019	36,503,800
Ending balance, value at Sep. 30, 2019	$ 3,650	$ 5,748,250		$ (5,837,810)	$ (85,910)
Beginning balance, shares at Dec. 31, 2019	36,503,800
Beginning balance, value at Dec. 31, 2019	$ 3,650	$ 5,748,250		$ (5,862,522)	$ (110,622)
Common stock issued for services, shares	100,000
Common stock issued for services, value	$ 10	$ 9,990			$ 10,000
Expense recognition of deferred stock-based compensation
Net loss				$ (47,328)	(47,328)
Ending balance, shares at Mar. 31, 2020	36,603,800
Ending balance, value at Mar. 31, 2020	$ 3,660	$ 5,758,240		$ (5,909,850)	(147,950)
Beginning balance, shares at Dec. 31, 2019	36,503,800
Beginning balance, value at Dec. 31, 2019	$ 3,650	$ 5,748,250		$ (5,862,522)	(110,622)
Net loss					$ (108,916)
Ending balance, shares at Sep. 30, 2020	36,603,800
Ending balance, value at Sep. 30, 2020	$ 3,660	$ 5,758,240		$ (5,971,438)	$ (209,538)
Beginning balance, shares at Mar. 31, 2020	36,603,800
Beginning balance, value at Mar. 31, 2020	$ 3,660	$ 5,758,240		$ (5,909,850)	(147,950)
Common stock issued for services, shares
Common stock issued for services, value
Expense recognition of deferred stock-based compensation
Net loss				$ (37,478)
Ending balance, shares at Jun. 30, 2020	36,603,800
Ending balance, value at Jun. 30, 2020	$ 3,660	$ 5,758,240		$ (5,947,328)	$ (185,428)
Common stock issued for services, shares
Common stock issued for services, value
Expense recognition of deferred stock-based compensation
Net loss				$ (24,110)	$ (24,110)
Ending balance, shares at Sep. 30, 2020	36,603,800
Ending balance, value at Sep. 30, 2020	$ 3,660	$ 5,758,240		$ (5,971,438)	$ (209,538)

NOTE 1 - ORGANIZATION AND DESCR

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS IA Energy Corp. (the Company) was incorporated in the State of Wyoming on January 6, 2016. Our operations to date have been devoted primarily to start-up and development activities, which include: (i) formation of the Company; (ii) development of our business plan; (iii) development of our proprietary waste-to-energy technology; and (iv) marketing of our proprietary waste-to-energy technology. We have not completed development of our proprietary waste-to-energy technology and there is no assurance that we will be successful in completing the development.

NOTE 2 - SIGNIFICANT ACCOUNTING

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. The following policies are considered to be significant: a. Accounting Method The Company recognizes income and expenses based on the accrual method of accounting. The Company has elected a calendar year-end. b. Interim Financial Statements The interim financial statements as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019 are unaudited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. These statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the information contained herein. Operating results for the nine months ended September 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the Unites States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2019 as included in our report on Form 10-K. c. Cash and Cash Equivalents Cash equivalents are generally comprised of certain highly liquid investments with original maturities of less than three months. d. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. e. Revenue Recognition Revenue will be recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery of products or services has occurred. To date, the Company has not recognized any revenues. f. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that all or some portion of such deferred tax assets will not be realized. A full allowance against deferred tax assets was provided as of September 30, 2020 and December 31, 2019. At September 30, 2020, the Company had net operating loss carryforwards of approximately $599,000 which may be offset against future taxable income. Approximately $280,000 expires in 2036 and 2037 and approximately $319,000 does not expire. No tax benefit has been reported in the financial statements because the potential tax benefits of the net operating loss carryforwards are offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a significant change in ownership occur, net operating loss carryforwards may be limited as to future use. g. Basic and Diluted Net Loss per Share of Common Stock Basic net loss per common share is based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. For the periods presented, the issued and outstanding warrants (See Note 3) were excluded from the calculation of diluted shares outstanding as the effect of their inclusion would be anti-dilutive. h. Recent Accounting Pronouncements Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material.

NOTE 3 - EQUITY TRANSACTIONS

NOTE 3 - EQUITY TRANSACTIONS	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
NOTE 3 - EQUITY TRANSACTIONS	NOTE 3 - EQUITY TRANSACTIONS The Company has 500,000,000 shares of common stock authorized with a par value of $0.0001. 25,000,000 shares of common stock were issued to the founder of the Company on incorporation. During the year ended December 31, 2018, the Company sold a total of 63,800 shares of its common stock (and 63,800 Warrants) to investors at a price of $0.50 per share or $31,900 total. On August 1, 2018, the Company issued a total of 10,475,000 shares of its common stock to one consulting firm entity and nine individuals for consulting services to be rendered to the Company pursuant to Consulting Agreements dated August 1, 2018 for terms ranging from 3 to 6 months. The shares were valued at $0.50 per share or $5,237,500 total which was expensed as consulting and business development expenses on the statements of operations over the terms of the respective Consulting Agreements. $1,833,334 (of the $5,237,500 total) was expensed in the three months ended September 30, 2018, $2,574,999 (of the $5,237,500 total) was expensed in the three months ended December 31, 2018, and $829,167 (of the $5,237,500 total) was expensed in the three months ended March 31, 2019. During the three months ended March 31, 2019, the Company sold a total of 200,000 shares of its common stock (and 200,000 Warrants) to an investor at a price of $0.50 per share or $100,000 total. On January 8, 2020, the Company issued 100,000 restricted shares of its common stock to a third party service provider in consideration of consulting services rendered to the Company. The shares were valued at $0.10 per share or $10,000 total which is included in consulting and business development expenses on the statement of operations for the three months ended March 31, 2020. Because there was no market for the common stock at January 8, 2020, the Company estimated the fair value of the issuance at the estimated fair value of the services rendered by the consultant. Warrants A summary of Warrants activity for the years ended December 31, 2018 and 2019, and for the nine months ended September 30, 2020 follows: Balance, January 1, 2018 150,000 Issued in 2018 63,800 Balance, December 31, 2018 213,800 Issued in 2019 200,000 Expired in 2019 (150,000 ) Balance, December 31, 2019 263,800 Issued in the nine months ended September 30, 2020 — Expired in the nine months ended September 30, 2020 (63,800 ) Balance, September 30, 2020 200,000 Each Warrant is exercisable into shares of our common stock at an exercise price of $1.00 per share and expires two years from the date of its issuance. As of September 30, 2020, there were a total of 200,000 Warrants outstanding (of which 200,000 expire in the three months ending March 31, 2021.

NOTE 4 - FINANCIAL INSTRUMENTS

NOTE 4 - FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2020
Investments, All Other Investments [Abstract]
NOTE 4 - FINANCIAL INSTRUMENTS	NOTE 4 - FINANCIAL INSTRUMENTS Our financial instruments consist of cash and cash equivalents, accounts payable and loans payable. The carrying amount of these assets and liabilities approximates fair value due to their short-term nature.

NOTE 5 - GOING CONCERN

NOTE 5 - GOING CONCERN	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NOTE 5 - GOING CONCERN	NOTE 5 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has sustained significant net losses which have resulted in an accumulated deficit at September 30, 2020 of $5,971,438 and has experienced periodic cash flow difficulties, all of which raise substantial doubt regarding the Company’s ability to continue as a going concern. Continuation of the Company as a going concern is dependent upon obtaining additional working capital. The management of the Company has developed a strategy which it believes will accomplish this objective through short term loans from related parties and additional equity investments which will enable the Company to continue operations for the coming year. However, there is no assurance that these objectives will be met. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from the outcome of this uncertainty.

NOTE 6 - RELATED PARTY TRANSACT

NOTE 6 - RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
NOTE 6 - RELATED PARTY TRANSACTIONS.	NOTE 6 - RELATED PARTY TRANSACTIONS Loans Payable, Related Party The Company periodically receives advances from a corporation controlled by John Munoz, beneficial owner of 25,000,000 shares of our common stock and Chief Executive Officer of the Company from inception on January 6, 2016 to July 25, 2017. These loans are non-interest bearing and due on demand. The amount of loans payable to this corporation as of September 30, 2020 and December 31, 2019 was $190,650 and $96,750, respectively. Sublease Agreement On July 1, 2017, the Company entered into a Sublease Agreement with another corporation controlled by John Munoz. The Sublease Agreement provided for the Company’s use of office space in Harbor City, California at a Monthly Base Rent of $500 per month. The term of the Sublease commenced on July 1, 2017 and ended October 31, 2019. Effective November 1, 2019, the Company entered into a Sublease Agreement with the related party described in the first paragraph of Note 6 for the Company’s use of office space in Long Beach, California at a Monthly Base Rent of $500 per month. The Sublease is month to month and terminable by either party upon 30 days written notice. For the nine months ended September 30, 2020 and 2019, the Company recorded $4,500 and $4,500, respectively, in rent expense which is included in other selling, general and administrative expenses.

NOTE 2 - SIGNIFICANT ACCOUNTI_2

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Accounting Method	a. Accounting Method The Company recognizes income and expenses based on the accrual method of accounting. The Company has elected a calendar year-end.
Interim Financial Statements	b. Interim Financial Statements The interim financial statements as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019 are unaudited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. These statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the information contained herein. Operating results for the nine months ended September 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the Unites States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2019 as included in our report on Form 10-K.
Cash and Cash Equivalents	c. Cash and Cash Equivalents Cash equivalents are generally comprised of certain highly liquid investments with original maturities of less than three months.
Use of Estimates in the Preparation of Financial Statements	d. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	e. Revenue Recognition Revenue will be recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery of products or services has occurred. To date, the Company has not recognized any revenues.
Income Taxes	f. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that all or some portion of such deferred tax assets will not be realized. A full allowance against deferred tax assets was provided as of September 30, 2020 and December 31, 2019. At September 30, 2020, the Company had net operating loss carryforwards of approximately $599,000 which may be offset against future taxable income. Approximately $280,000 expires in 2036 and 2037 and approximately $319,000 does not expire. No tax benefit has been reported in the financial statements because the potential tax benefits of the net operating loss carryforwards are offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a significant change in ownership occur, net operating loss carryforwards may be limited as to future use.
Basic and Diluted Net Loss per Share of Common Stock	g. Basic and Diluted Net Loss per Share of Common Stock Basic net loss per common share is based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. For the periods presented, the issued and outstanding warrants (See Note 3) were excluded from the calculation of diluted shares outstanding as the effect of their inclusion would be anti-dilutive.
Recent Accounting Pronouncements	h. Recent Accounting Pronouncements Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material.

NOTE 2 - SIGNIFICANT ACCOUNTI_3

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Sep. 30, 2020USD ($)
Accounting Policies [Abstract]
Net operating loss carryforwards	$ 599,000
Approximately expires	280,000
Approximately does not expire	$ 319,000

NOTE 3 - EQUITY TRANSACTIONS (D

NOTE 3 - EQUITY TRANSACTIONS (Details Narrative) - $ / shares	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Stock authorized	500,000,000	500,000,000
Common stock issued, par value	$ 0.0001	$ 0.0001
Company stock
Stock authorized	500,000,000
Common stock issued, par value	$ 0.0001
Stock issued to the founder
Common stock issued, shares	25,000,000
Stock sold to investors January 6, 2018 to December 31, 2018
Common stock sold	63,800
Stock sold to investors January 6, 2018 to December 31, 2018
Common stock issued, per share price	$ 0.50
Warrants outstanding	365,000
Stock sold to investors during the year ended December 31, 2017
Common stock issued, per share price	$ 0.50
Common stock sold	150,000
Warrants outstanding	150,000
Warrants
Warrants exercise price	$ 1
Warrants outstanding	263,800

NOTE 5 - GOING CONCERN (Details

NOTE 5 - GOING CONCERN (Details Narrative)	Sep. 30, 2020USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 5,971,438

NOTE 6 - RELATED PARTY TRANSA_2

NOTE 6 - RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Nov. 01, 2019
Consulting firm corporations
Loans payable	$ 168,350		$ 96,750
Sublease Agreement
Monthly base rent				$ 500
Rent expense	$ 4,500	$ 4,500