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Commitments
 12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS

20. COMMITMENTS

 

Lease Commitment

 

On November 20, 2017, Xi'an TCH entered into a lease for its office with a term from December 1, 2017 through November 30, 2020. The monthly rent is RMB 36,536 ($5,600) with quarterly payment in advance.

 

On August 2, 2018, the Company entered into a lease for its office use in Beijing with a term from August 4, 2018 through August 3, 2020. The monthly rent is RMB 22,000 ($3,205) with quarterly payment in advance. This lease was terminated in 2019.

 

For the years ended December 31, 2019 and 2018, the rental expense of the Company was $86,874 (including Beijing office rent of $19,674) and $83,394 (including Beijing office rent of $16,194), respectively. 

 

The Company adopted ASC 842 on CFS on January 1, 2019. The components of lease costs, lease term and discount rate with respect of the office lease with an initial term of more than 12 months are as follows:

 

   Year Ended 
   December 31, 2019 
Operating lease cost  $66,262 
Weighted Average Remaining Lease Term - Operating leases   0.92 years 
Weighted Average Discount Rate - Operating leases   3%

 

The following is a schedule, by years, of maturities of the office lease liabilities as of December 31, 2019:

 

   Operating Leases 
2020  $57,610 
Total undiscounted cash flows   57,610 
Less: imputed interest   (855)
Present value of lease liabilities  $56,755 

 

Construction Commitment

 

Refer to Note 1 for additional details related to lease commitments with Xuzhou Tian'an, Note 6 for commitments on construction in progress.

 

Employment Agreement

 

On May 8, 2020, the Company entered an employment agreement with the Company's CFO for a term of 24 months. The monthly salary is RMB 16,000 ($2,300). The Company will grant the CFO no less than 5,000 shares of the Company's common stock annually.