Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. CFN Enterprises Inc. (1352952) 10-Q published on May 17, 2021 at 4:57 pm
On March 30, 2021, the Company entered into a new lease with Emerging Growth, which will take the place of the old lease effective April 1, 2021. The lease provides for payments of $4,500 per month, and has a term of three years. Starting on April 1, 2021, the Company will present this lease in accordance with ASC 842, Leases. The present value of the future lease payments is $144,560, which will be recorded as a lease liability and a right-to-use asset on the Company’s balance sheet.
On April 1, 2021, the Company commenced a new lease for its office space in Whitefish, Montana. The lease has a three-year term and initial payments of $4,500 per month. On that date, the Company will record a right-to-use asset and related lease liability of $144,960 to be amortized over the three-year term of the lease.
During the three months ended March 31, 2021, the Company started fourteen new campaigns, compared with five during the same period in 2020. These campaigns have a value of $432,500 which will be recognized as revenue over the next three to six months. In 2020, the cumulative value of campaigns begun in the first three months was $117,500 with much of the revenue recognized during the first quarter of 2020 attributable to the final stages of campaigns started in previous quarters.
The costs of revenue consist primarily of labor, fees paid for production of content for clients and the costs of placement of the content on various platforms. In 2020, the contracts required more production services and related labor than the contracts in 2021. As a result, the cost of revenue in 2021 was lower as a percentage of the revenue recognized during the quarter.
Our operating expenses for the three months ended March 31, 2021 were higher than those in the corresponding three months in 2020 due largely to professional service fees related to the audit and filing of our Form 10-K for the year ended December 31, 2020. For the year ended December 31, 2019, we did not incur these fees until the second quarter of 2020.