Leases

9 Months Ended

Sep. 30, 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 leases. The discount rate used in measuring the lease liabilities and right of use assets was determined by reviewing the Company's incremental borrowing rate at the initial measurement date. For the three and nine months ended September 30, 2019, operating lease cost was $20,349 and $66,804, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $21,629 and $71,005, respectively. As of September 30, 2019, the Company reported operating lease right of use assets and operating lease liabilities of $157,177 and $159,948, respectively. As of September 30, 2019, its operating leases had a weighted average remaining lease term of 1.77 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 September 30:

2020	$	94,672
2021		72,390
Total undiscounted cash flows		167,062
Less: Imputed interest		(7,114	)
		159,948
Less: Operating lease liabilities, current portion		(88,996	)
Operating lease liabilities, net of current portion	$	70,952

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