Leases

12 Months Ended

Dec. 31, 2021

Disclosure Text Block [Abstract]

LEASES

12. LEASES

Operating Leases

Warehouse and office lease

Effective October 1, 2018, the Company entered a 62.5 months lease for a facility including warehouse and office in the City of Irvine, California, with a security deposit of $41,841. The monthly rent is approximately $16,200 with a 3% increase each year. The lease provided an option to extend at lease maturity for another five-years, with six months prior written notice of lessee’s intention to extend the lease. The Company’s CEO is the guarantor of this lease. Lessor will have the right to proceed against guarantor following any breach or default by lessee without first proceeding against lessee and without previous notice to or demand upon either lessee or guarantor.

The components of lease costs, lease term and discount rate with respect of warehouse and office lease in the City of Irvine with an initial term of more than 12 months are as follows:

	Year Ended December 31, 2021			Year Ended December 31, 2020
Operating lease cost	$	213,124		$	213,124
Weighted Average Remaining Lease Term - Operating leases including options to renew		6.76 years			7.76 years
Weighted Average Discount Rate - Operating leases		5	%		5	%

The following is a schedule, by years, of maturities of warehouse and office lease liabilities as of December 31, 2021:

For the 12 months ending	Operating Leases
December 31, 2022	$	215,989
December 31, 2023		222,469
December 31, 2024		225,757
December 31, 2025		225,757
December 31, 2026		225,757
Thereafter		395,072
Total undiscounted cash flows		1,510,802
Less: imputed interest		(232,340	)
Present value of lease liabilities	$	1,278,462

Equipment leases

In 2017, the Company entered two leases for two copiers with terms of 60 and 63 months respectively, and monthly payments of $162 and $213, respectively. The Company also entered two leases for two forklifts with a term of 60 months for each, and the monthly payment was $292 and $669, respectively.

The components of lease costs, lease term and discount rate with respect of equipment lease with an initial term of more than 12 months are as follows:

	Year Ended			Year Ended
	December 31, 2021			December 31, 2020
Operating lease cost	$	16,121		$	16,121
Weighted Average Remaining Lease Term - Operating leases		0.44 years			1.44 years
Weighted Average Discount Rate - Operating leases		5	%		5	%

The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2021:

For the 12 months ending	Operating Leases
December 31, 2022	$	6,262
Total undiscounted cash flows		6,262
Less: imputed interest		(89	)
Present value of lease liabilities	$	6,173