Long term deferred expenses

3 Months Ended

Mar. 31, 2019

Deferred Expenses [Abstract]

Long term deferred expenses

NOTE 7. Long term deferred expenses

On May 7, 2015, July 3, 2015 and October 16, 2015, Jiarun entered into three lease agreements to lease medical equipment from Hair Finance Leasing (China) Co., Ltd. (“Hair”), a third party, for a five-year period, in which Jiarun is required to pay consulting fee to Hair for the services provided over the five years. The consulting fee paid but attributable to the current and subsequent accounting periods was accounted for as deferred expenses and long term deferred expenses.

During the year ended December 31, 2018, the Company paid approximately $1.6 million for the decoration of its outpatient building and the two Branch Hospitals.

The consulting and decoration fees paid but attributable to the current and subsequent accounting periods were accounted for as deferred expenses and long term deferred expenses.

The current portion of the prepaid consulting fee was recorded as deferred expenses $298,326 and $291,104 as of March 31, 2019 and December 31, 2018. The long-term deferred expenses were $1,189,334 and $1,238,455 as of March 31, 2019 and December 31, 2018.

The Company recorded consulting fee of $16,720 and $17,740 for the three months ended March 31, 2019 and 2018, and decoration fees of $74,191 and $nil for the three months ended March 31, 2019 and 2018, respectively.