Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 9 – COMMITMENTS AND CONTINGENCIES

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 year ended December 31, 2019, operating lease cost was $90,306 and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $95,985, respectively. As of December 31, 2019, the Company reported operating lease right of use assets and operating lease liabilities of $136,779 and $140,007, respectively. As of December 31, 2019, its operating leases had a weighted average remaining lease term of 1.52 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 December 31:

2020	$	95,986
2021		49,397
Total undiscounted cash flows		145,383
Less: Imputed interest		(5,376	)
		140,007
Less: Operating lease liabilities, current portion		(91,306	)
Operating lease liabilities, net of current portion	$	48,701

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

The Company does not have any material contractual obligations for purchases of raw materials or capital improvements.