Operating Lease Righ-of-Use Assets

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

OPERATING LEASE RIGH-OF-USE ASSETS

13. OPERATING LEASE RIGH-OF-USE ASSETS

The Company has leases for the office, factory and warehouse in the PRC, under operating leases expiring on various dates through September 2023, which is classified as operating leases. There are no residual value guarantees and no restrictions or covenants imposed by the leases. Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2021, with discounted rate of 4.75%. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. Rent expense for the years ended December 31, 2021 and 2020 were $323,356 and $268,120, respectively.

The Company’s future minimum payments under long-term non-cancelable operating leases are as follows:

	2021
Within 1 year	$	81,998
After 1 year but within 5 years		16,778
Total lease payments	$	98,776
Less: imputed interest		(14,819	)
Total lease obligations		83,957
Less: current obligations		(69,259	)
Long-term lease obligations	$	14,698

Other information:

	For the years ended December 31,
	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	323,356		$	268,120
Right-of-use assets obtained in exchange for operating lease liabilities		94,486			383,203
Remaining lease term for operating leases (years)		0.88			1.88
Weighted average discount rate for operating leases		4.75	%		4.75	%