Operating Lease

6 Months Ended

Jun. 30, 2019

Lessee Disclosure [Abstract]

Operating Lease

NOTE - 13 OPERATING LEASE

The Company has an operating lease agreement for the office space with remaining lease terms of 3 years. The Company does not have any other leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. 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 or on our compliance with our financial covenants associated with our loans.

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

(a) Rent expenses

For six months ended June 30, 2019, the Company has incurred rent expenses solely for the office premises on a monthly basis as follows:

	Six Months Ended June 30, 2019
Lease Cost
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)	$	28,372
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the second quarter 2019	$	25,686
Weighted average remaining lease term – operating leases (in years)		1.42
Average discount rate – operating leases		4.35	%
The supplemental balance sheet information related to leases for the period is as follows:
Operating leases
Right-of-use assets	$	76,255
Total operating lease assets	$	76,255
Short-term operating lease liabilities	$	54,426
Long-term operating lease liabilities	$	30,613
Total operating lease liabilities	$	85,039

Maturities of the Company’s lease liabilities are as follows:

Year ending June 30,	Operating Lease
2019 (remaining 6 months)		31,002
2020		56,838
Total lease payments		87,840
Less: Imputed interest/present value discount		(2,801	)
Present value of lease liabilities		85,039

Lease expenses were $28,372 and $0 during the six months ended June 30, 2019 and 2018, respectively.