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Leases

3 Months Ended

Mar. 31, 2020

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 months ended March 31, 2020 and 2019, operating lease cost was $22,229 and $23,346, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $23,627 and $24,814, respectively. As of March 31, 2020 and December 31, 2019, the Company reported operating lease right of use assets of $112,447 and $136,779, respectively and operating use liabilities of $115,777 and $140,007, respectively. As of March 31, 2020, its operating leases had a weighted average remaining lease term of 1.27 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 March 31:

2020			94,510
2021			25,010

Total undiscounted cash flows			119,520
Less: Imputed interest			(3,743	)
			115,777
Less: Operating lease liabilities, current portion			(90,974	)
Operating lease liabilities, net of current portion			24,803

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