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Leases
6 Months Ended
Jun. 30, 2025
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 of 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 June 30, 2025 and 2024, operating lease cost was $19,291 and $19,228, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $20,013 and $20,142, respectively.  For the six months ended June 30, 2025 and 2024, operating lease cost was $38,468 and $38,629, respectively and cash paid for amounts included in the measurement of lease liabilities for operating cash flows from operating leases was $39,906 and $40,074, respectively.  As of June 30, 2025 and December 31, 2024, the Company reported right of use assets of $0 and $38,298, respectively and lease liabilities of $0 and $39,323, respectively. As of June 30, 2025, the Company no longer has any remaining operating leases.

 

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