LEASES

6 Months Ended

Jun. 30, 2022

Leases

LEASES

NOTE 7 — LEASES

The Company has entered into two leases for its office space, which were classified as operating leases. It has also entered into two leases for office equipment, one of which was terminated in June 2022, and a lease for a vehicle, and these leases were classified as finance leases. Right-of-use assets of these finance leases in the amount of $28,487 and $57,167 are included in property and equipment as of June 30, 2022 and December 31, 2021, respectively.

The components of lease costs are as follows:

	For the Six Months Ended
	June 30,
	2022		2021
Finance lease costs
Amortization of right-of-use assets	$	21,972	$	26,883
Interest on lease liabilities		288		689
Total finance lease costs		22,260		27,572
Operating lease costs		164,513		199,318
Total lease costs	$	186,773	$	226,890

The following table presents supplemental information related to the Company’s leases:

	For the Six Months Ended
	June 30,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	288		$	689
Operating cash flows from operating leases		168,793			204,296
Financing cash flows from finance leases		24,189			29,561
Weighted average remaining lease term (years)
Finance leases		1.3			1.9
Operating leases		9.6			10.6
Weighted-average discount rate: (per annum)
Finance leases		1.32	%		1.32	%
Operating leases		1.32	%		1.32	%

As of June 30, 2022, the future maturity of lease liabilities is as follows:

Year ending December 31,	Finance leases			Operating leases
Remaining of 2022	$	11,140		$	152,511
2023		18,750			305,021
2024		276			305,021
2025		-			305,021
2026		-			305,021
Thereafter		-			1,560,912
Total lease payments		30,166			2,933,507
Less: imputed interest		(170	)		(185,172	)
Total lease liabilities		29,996			2,748,335
Less: current portion		20,717			280,789
Non-current lease liabilities	$	9,279		$	2,467,546

Pursuant to the operating lease agreements, the Company made security deposits to the lessors. The security deposits amounted to $235,274 and $278,237 as of June 30, 2022 and December 31, 2021, respectively.