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Commitment and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitment and Contingencies

Note 17 – Commitment and Contingencies 

 

Lease commitments

 

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which results in an economic penalty.

 

 

The Company has two property lease agreements with lease terms ranging for one year and two years, respectively. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Upon adoption of ASU 2016-02, no right-of-use (“ROU”) assets nor lease liability was recorded for the lease with a lease term with one year.

 

For the years ended December 31, 2021, 2022 and 2023, there were no rent expenses for the short term lease.

 

The Company’s commitment for minimum lease payments under the operating lease that is within twelve months as of June 30, 2024 as follow:

 

Twelve months ending June 30,  Minimum lease
payment		 
2025   282,900 
2026   11,119 
Total future lease payment   294,019 
Amount representing interest   (2,308)
Present value of operating lease liabilities   291,711 
Less: current portion   (280,592)
Long-term portion   11,119 

 

The following summarizes other supplemental information about the Company’s operating lease as of June 30, 2024:

 

Weighted average discount rate   2.15%
Weighted average remaining lease term (years)   1.0 years