Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

LEASES

NOTE 9 – LEASES

The Company has leases for certain office and production facilities in the PRC, which are classified as operating leases. The leases contain payment terms for fixed amounts. Options to extend are recognized as part of the lease liabilities and recognized as right to use assets when Management estimates to renew the lease. There are no residual value guarantees, no variable lease payments and no restrictions or covenants imposed by the leases. The discount rate used in measuring each lease’s liabilities and right of use assets was determined by reviewing the Company’s incremental borrowing rate at the initial measurement date. In the first quarter of 2019, operating lease cost was $23,346 and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating lease was $24,814. As of March 31, 2019, the Company reported operating lease right of use assets and operating lease liabilities of $212,587 and $213,826, respectively. As of March 31, 2019, its operating lease had a weighted average remaining lease term of 2.27 years and a weighted average discount rate of 4.75%.

Minimum lease payments for the Company’s operating lease liabilities were as follows for the twelve month periods ended March 31:

2020	99,776
2021	99,776
2022	26,405
Total undiscounted cash flows	225,957
Less: Imputed interest	(12,131	)
	213,826
Less: Operating lease liabilities, current portion	(91,597	)
Operating lease liabilities, net of current portion	122,229

The Company has leases with terms less than one year for certain provincial sales offices that are not material.