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Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

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 September 30, 2020 and 2019, operating lease cost was $23,127 and $20,349, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $24,581 and $21,629, respectively. For the nine months ended September 30, 2020 and 2019, operating lease cost was $69,382 and $66,804, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $73,745 and $71,005, respectively. As of September 30, 2020 and December 31, 2019, the Company reported operating lease right of use assets of $70,733 and $136,779, respectively and operating use liabilities of $73,690 and $140,007, respectively. As of September 30, 2020, its operating leases had a weighted average remaining lease term of 0.77 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 September 30:

2021		$	75,184
Total undiscounted cash flows			75,184
Less: Imputed interest			(1,494	)
			73,690
Less: Operating lease liabilities, current portion			(73,690	)
Operating lease liabilities, net of current portion		$	-

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

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- References

No definition available.

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- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI http://asc.fasb.org/topic&trid=2208923

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