XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.21.1

Lease | 3 Months Ended
--- | ---
Mar. 31, 2021
ASU 2016-02 Transition [Abstract] |
Lease |
| 9. | Lease
| (a) | Right-of-use assets
|  | Prepaid land |
|  | lease payments |
Balance as of January 1, 2021 |  | $ | 7,500,780 |
Amortization charge for the period |  |  | (43,325 | )
Foreign exchange adjustment |  |  | (27,243 | )
Balance as of March 31, 2021 |  | $ | 7,430,212 |
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, 2020 and March 31, 2021 are as follows:
|  | December 31, |  |  | March 31, |
|  | 2020 |  |  | 2021 |
Total future minimum lease payments receivable |  | $ | 1,210,305 |  |  | $ | 2,976,071 |
Less: unearned income, representing interest |  |  | (124,653 | ) |  |  | (271,838 | )
Present value of minimum lease payments receivables |  |  | 1,085,652 |  |  |  | 2,704,233 |
Less: Current portion |  |  | (235,245 | ) |  |  | (836,714 | )
Non-current portion |  | $ | 850,407 |  |  | $ | 1,867,519 |
Vehicle sale net of cost recognized in other income (expense) and interest income from vehicle leasing was $(91,833) and $26,637 for the three month ended March 31, 2021, respectively. The future minimum lease payments receivable for sales type leases are as follows:
12 months ending March 31, |  | Total Minimum Lease Payments to be Received |  |  | Amortization of Unearned Income |  |  | Net Investment in Sales Type Leases |
2022 |  | $ | 979,368 |  |  | $ | 142,654 |  |  | $ | 836,714 |
2023 |  |  | 952,265 |  |  |  | 91,221 |  |  |  | 861,044 |
2024 |  |  | 911,671 |  |  |  | 36,609 |  |  |  | 875,062 |
2025 |  |  | 132,767 |  |  |  | 1,354 |  |  |  | 131,413 |
2026 |  |  | - |  |  |  | - |  |  |  | - |
Thereafter |  |  | - |  |  |  | - |  |  |  | - |
|  |  | 2,976,071 |  |  |  | 271,838 |  |  |  | 2,704,233 |
| (c) | Operating lease
On January 14, 2021, Nanjing Daxin entered into a lease agreement for manufacturing, warehouse and office space in Tianjing with a three year term, commencing on March 1, 2021 and expiring on February 29, 2024. The monthly rental payment is approximately $11,162 (RMB73,143) per month. The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2021:
|  | Operating leases |
12 months ending March 31, |  |  |
2022 |  | $ | 11,162 |
2023 |  |  | 133,945 |
2024 |  |  | 122,783 |
2025 |  |  | - |
Thereafter |  |  | - |
Total undiscounted cash flows |  |  | 267,890 |
Less: imputed interest |  |  | (30,290 | )
Present value of lease liabilities |  | $ | 237,600 |
Lease term and discount rate |  |  |
|  | March 31, 2021 |
Weighted-average remaining lease term - years |  |  | 2.83 |
Operating leases |  |  |  |
Weighted-average discount rate (%) |  |  | 6.175 | %

X
- References No definition available. + Details
Name: | us-gaap_ASU201602TransitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for lessee's operating leases. Includes, but is not limited to, description of lessee's operating lease, existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph (Note 1,3) -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121573735&loc=d3e41499-112717 Reference 3: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=121555522&loc=d3e12069-110248 Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121573735&loc=d3e41502-112717 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121549808&loc=d3e36991-112694 + Details
Name: | us-gaap_OperatingLeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration