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Leases
 12 Months Ended
Dec. 31, 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 years ended December 31, 2020 and 2019, operating lease cost was $96,552 and $90,306, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $102,624 and $95,985, respectively. As of December 31, 2020 and December 31, 2019, the Company reported operating lease right of use assets of $49,687 and $136,779, respectively and operating use liabilities of $52,070 and $140,007, respectively. As of December 31, 2020, its operating leases had a weighted average remaining lease term of 0.52 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 years ended December 31:

 

2021  $52,814 
      
Total undiscounted cash flows   52,814 
Less: Imputed interest   (744)
    52,070 
Less: Operating lease liabilities, current portion   - 
Operating lease liabilities, net of current portion  $52,070 

 

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