Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

14. LEASES

The Company has leases for the offices, factory and warehouse in the PRC, under operating leases expiring on various dates through June 2027, which is classified as operating leases. In June 2022, the Company entered into a new lease agreement for a lease term of five years upon the expiration of the lease term for an office in February 2022. In addition, the Company has entered into various leases with lease terms of 12 months that do not contain a purchase option in 2022. The Company has elected to apply the exemption on the lessee accounting model for all short-term leases and therefore the operating lease commitment of $192,868 to be paid within the next 12 months will be recognized as an expense on a straight-line basis over the lease term. For the long-term 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 June 30, 2022, 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 three and six months ended June 30, 2022 and 2021 were $114,812, $185,079, $81,242 and $159,838, respectively. Depreciation expenses for the three and six months ended June 30, 2022 and 2021 were $9,246, $9,246, nil and $nil, respectively.

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

	June 30, 2022
Within 1 year	$	119,794
After 1 year but within 5 years		422,009
Total lease payments	$	541,803
Less: imputed interest		(86,556	)
Total lease obligations		455,247
Less: current obligations		(95,683	)
Long-term lease obligations	$	359,564

Other information:

	For the six months ended June 30,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	192,575		$	159,838
Right-of-use assets obtained in exchange for operating lease liabilities		118,611			235,669
Remaining lease term for operating leases (years)		5			2.25
Weighted average discount rate for operating leases		4.75	%		4.75	%