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Lease

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease

10.

Lease

(a)

Right-of-use assets

	Prepaid land lease payments
Balance as of January 1, 2020	$	7,194,195
Amortization charge for the year		(162,763	)
Foreign exchange adjustment		469,348
Balance as of December 31, 2020	$	7,500,780

Lump sum payments were made upfront to acquire the leased land from the owners with lease period for 50 years up to August 9, 2064, and no ongoing payments will be made under the terms of these land leases.

(b)

Company as Lessor

The Company derives a portion of its revenue from leasing arrangements of these vehicles to end users. Such arrangements provide for monthly payments covering the vehicles sales and interest. These arrangements meet the criteria to be accounted for as sales-type leases. Accordingly, vehicle sale net of cost is recorded as other income and recognized upon delivery of the vehicle and its acceptance by the end user. Upon the recognition of such revenue, an asset is established for the investment in sales-type leases. Interests are recognized monthly over the lease term. The components of the net investment in sales-type leases as of December 31, 2019 and 2020 are as follows:

	December 31,		December 31,
	2019		2020
Total future minimum lease payments receivable	$	-		1,210,305
Less: unearned income, representing interest		-		(124,653	)
Present value of minimum lease payments receivables		-		1,085,652
Less: Current portion		-		(235,245	)
Non-current portion	$	-		850,407

Vehicle sale net of cost recognized in other income (expense) and interest income from vehicle leasing was $(410,774) and $13,106 for the year ended December 31, 2020, respectively.

The future minimum lease payments receivable for sales type leases are as follows:

Fiscal years ending December	Total Minimum Lease Payments to be Received		Amortization of Unearned Income		Net Investment in Sales Type Leases
2021	$	299,850	$	64,605	$	235,245
2022		422,755		41,852		380,903
2023		422,755		17,654		405,101
2024		64,945		542		64,403
2025		-		-		-
Thereafter		-		-		-
		1,210,305		124,653		1,085,652