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Commitments

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

18. 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 three months ended March 31, 2020 and 2019, the rental expense of the Company was $16,374 and $26,582 (including Beijing office rent of $9,782), 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:

	Three Months Ended
	March 31, 2020
Operating lease cost	$	16,374
Weighted Average Remaining Lease Term - Operating leases		0.67 years
Weighted Average Discount Rate - Operating leases		3	%

The following is a schedule, by years, of maturities of the office lease liabilities as of March 31, 2020:

	Operating Leases
2020	$	41,254
Total undiscounted cash flows		41,254
Less: imputed interest		(460	)
Present value of lease liabilities	$	40,794

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.