Operating Lease

6 Months Ended

Jun. 30, 2024

15.

OPERATING LEASE

The Company has operating leases for its office facilities. The lease is located at 9820 Dino Drive, Suite 110, Elk Grove, California, 95624,

which

consist of approximately 3,653 square meters. The Company’s

leases have remaining terms of approximately 37 months for a lease term commencing on August 1, 2020 and ended

on August 31, 2023. The lease was renewed for additional 36 months. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes

The following table provides a summary of leases by balance sheet location as of 

June

3

, 2024 and December 31, 2023:

Assets/liabilities	June 3 0 , 2024		December 31, 2023
Assets
Operating lease right-of-use assets	$	71,870	$	87,380

Liabilities
Operating lease liability - current	$	32,207	$	31,413
Operating lease liability - non-current		39,663		55,967
Total lease liabilities	$	71,870	$	87,380

Cash flow information related to operating leases consists of the following:

	For the six months ended June 3 0 , 2024		For the six months Ended June 3 0 , 2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	17,534	$	13,938
Right-of-use assets obtained in exchange for new lease obligations:		-		-

The operating lease expenses for the

six

months ended

June

, 2024 and 2023 were as follows:

Lease Cost		Classification				For the three months ended June 3 0 , 2024				For the three months ended June 3 0 , 2023
Operating lease expense		General and administrative expenses				$	17,534			$	13,938

Maturities of operating lease liabilities as of 

June

3

, 2024 were as follows:

Maturity of Lease Liabilities	Operating Leases
Within one year		17,534
Within a period of more than one year but not more than two years	$	35,069
Within a period of more than two year but not more than three years		23,379
Within a period of more than three year but not more than four years		-
Within a period of more than four years but not more than five years		-
More than five years		-
Total lease commitment	$	75,982
Less: interest		(4,113	)
Present value of lease payments	$	71,870

Lease liabilities include lease and non-lease component such as management fee.

Lease Term and Discount Rate	June 3 0 , 2024			December 31, 2023
Weighted-average remaining lease term (years)
Operating leases		2. 42			2.92

Weighted-average discount rate (%)
Operating leases		5	%		5	%