LEASE DISCLOSURE

6 Months Ended

Mar. 31, 2020

Notes

LEASE DISCLOSURE

NOTE 9 - LEASE

The Company has operating lease agreements for an office in Xian, China with remaining lease terms of 3 years. The Company does not have any other leases. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

This standard did not have a significant impact on our liquidity.

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

	Six Months ended March 31, 2020
	(Unaudited)
Lease Cost
Operating lease cost (included in general and administrative expenses in the Company’s unaudited condensed statement of operations)	$	11,311
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the six months ended March 31, 2020	$	13,221
Remaining lease term - operating lease (in years)		2.583
Discount rate - operating lease		4.75%

	As of March 31, 2020
	(Unaudited)
Operating lease
Right-of-use assets, net	$	65,994
Operating lease liabilities - current portion		23,900
Operating lease liabilities - non-current portion		40,204
Total operating lease liabilities	$	64,104

Year Ending	Operating Lease
2020 (remaining 6 months)	$	13,085
2021		26,170
2022		28,263
Total lease payments	$	67,518
Less: Present value discount		(3,414)
Present value of lease liabilities	$	64,104

Lease expenses were $11,331 during the six months ended March 31, 2020 respectively, and there was no rent incurred during the six months ended March 31, 2019, respectively.