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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

NOTE 9 - LEASES

The Company has leases for certain office and production facilities in the PRC which are classified as operating leases. The leases contain payment terms for fixed amounts. Options to extend are recognized as part of the lease liabilities and recognized as right to use assets when management estimates to renew the lease. There are no residual value guarantees, no variable lease payments, and no restrictions or covenants imposed by leases. The discount rate used in measuring the lease liabilities and right of use assets was determined by reviewing the Company's incremental borrowing rate at the initial measurement date. For the three and six months ended June 30, 2019, operating lease cost was $23,109 and $46,454, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $24,562 and $49,376, respectively. As of June 30, 2019, the Company reported operating lease right of use assets and operating lease liabilities of $184,618 and $186,780, respectively. As of June 30, 2019, its operating leases had a weighted average remaining lease term of 2.02 years and a weighted average discount rate of 4.75%.

Minimum lease payments for the Company's operating lease liabilities were as follows for the twelve month periods ended June 30:

2020			97,402
2021			97,402
2022			1,426

Total undiscounted cash flows			196,230
Less: Imputed interest			(9,450	)
			186,780
Less: Operating lease liabilities, current portion			(90,483	)
Operating lease liabilities, net of current portion			96,297

The Company has leases with terms less than one year for certain provincial sales offices that are not material.