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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%