18. LEASE

Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the package of practical expedients that does not require the Company to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The impact of the adoption of the ASC 842, as of April 1, 2019, the Company recognized approximately $246,227 ROU assets and approximately $247,325 lease liabilities, primarily related to leases of facilities. The ROU and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 6.0%, which is determined using an incremental borrowing rate with similar term in the PRC. The average remaining lease term of its existing leases is 2.34 years. The adoption of this standard resulted in the recording of operating lease assets and operating lease liabilities as of April 1, 2019, with no related impact on the Company's unaudited condensed consolidated statement of changes in stockholders' equity or consolidated statements of operations and comprehensive loss.

The Company occupies various offices under operating lease agreements with a term shorter than 12 months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Rental expenses from continuing operations totaled $50,690 and $16,402 for the three months ended December 31, 2019 and 2018, respectively. Rental expenses from discontinued operations totaled $27,077 and $30,747 for the three months ended December 31, 2019 and 2018, respectively.

Rental expenses from continuing operations totaled $202,751 and $16,402 for the nine months ended December 31, 2019 and 2018, respectively. Rental expenses from discontinued operations totaled $84,192 and $97,116 for the nine months ended December 31, 2019 and 2018, respectively.

The following table sets forth the Company’s minimum lease payments in future periods:


	Lease payments
Twelve months ending December 31, 2020	$	374,112
Twelve months ending December 31, 2021		192,968
Twelve months ending December 31, 2022		124,187
Twelve months ending December 31, 2023		107,729
Twelve months ending December 31, 2024		41,168
Total lease payments		840,164
Less: discount		(76,805)
Present value of lease liabilities		763,359
Present value of lease liabilities – discontinued operations		(133,062)
Present value of lease liabilities – continuing operations	$	630,297