11.

LEASES

The Company’s leases office space in New Jersey, Hong Kong and Minnesota with lease termination dates of

2023,

2020,

and

2019,

respectively. The Minnesota lease is under

months, thus classified as short-term and

not

reported on the balance sheet under ASC

842.

The Hong Kong and the New Jersey leases include non-lease components with variable payments. The following tables present the components of lease expense and supplemental balance sheet information related to the operating leases, were:

	3 Months ended June 30,		6 Months ended June 30,
	2019		2019

Lease cost
Operating lease cost	$	42,981	$	85,962
Short-term lease cost		15,094		31,390
Sublease income		-		-
Total lease cost	$	58,075	$	117,352

Balance sheet information
Operating ROU assets			$	532,757

Operating lease liabilities, current portion			$	141,068
Operating lease liabilities, non-current portion				383,028
Total operating lease liabilities			$	524,096

Weighted average remaining lease term (in years) – operating leases				3.90
Weighted average discount rate – operating leases				5.50	%

Supplemental cash flow information related to leases were as follows, for the

six

months ended

June 30, 2019:

Cash paid for amounts included in the measurement of operating lease liabilities

84,231

Maturities of operating lease liabilities were as follows:

2019 (remaining six months)	$	83,217
2020		155,682
2021		127,425
2022		131,249
2023		89,226
Total future lease payments	$	586,799
Less: imputed interest		(62,703	)
Total	$	524,096

June 2019,

the Company entered into a lease agreement with respect to

5,544

square feet at

1301

Corporate Center Drive, Suite

1160,

Eagan, Minnesota. The term of the lease is

months and will commence in

September 2019.

Future lease payments are approximately

$129,000.

On commencement of the lease the Company will record an operating ROU asset and corresponding lease liability.