LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2021

LEASE COMMITMENTS

10. LEASE COMMITMENTS

10. LEASE COMMITMENTS

The Company has elected to not recognized lease assets and liabilities for lease with a term less than twelve months.

The Company has two (2) lease agreement for its office space that are recognized as operating lease right of use assets and liabilities. The duration of the leases are from November 15, 2020 to November 14, 2023 and January 1, 2020 to December 31, 2022, respectively. The security deposits for the leases were $9,319 and $45,552 as of September 30, 2021 and December 31, 2020.

The operating lease right-of-use assets ("ROU assets")and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for this lease based primarily on its lease term in Malaysia which is approximately 5.52%.

Such 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.

Right of use assets consist of the following:

	September 30,			December 31,
	2021			2020
Right of use assets	$	204,791		$	-
Add: New right of use assets recognized		-			-
Total		204,791			-
Less: accumulated amortization		(28,901	)		-
Net	$	175,890		$	-

The amortizations of ROU assets recorded as lease expenses were $31,225 and $nil for the nine months ended September 30,2021 and 2020, respectively. 

The undiscounted future minimum lease payment schedule as follows:

For the years ended December 31,	Amount
2021 (three months from September 30, 2021 to December 30, 2021)		10,205
2022 (twelve months from January 1, 2022 to December 31, 2022)		41,779
2023 (twelve months from January 1, 2022 to December 31, 2023)		38,898
Thereafter		113,453
Total	$	204,335