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Commitments | 6 Months Ended
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Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS | 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. For the six months ended June 30, 2020 and 2019, the rental expense of the Company was $32,502 and $53,067 (including Beijing office rent of $19,201), respectively. For the three months ended June 30, 2020 and 2019, the rental expense of the Company was $16,128 and $26,494 (including Beijing office rent of $9,419), 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:
|  | Six Months Ended |
|  | June 30, 2020 |
Operating lease cost – amortization of ROU |  | $ | 31,848 |
Operating lease cost – interest expense on lease liability |  | $ | 654 |
Weighted Average Remaining Lease Term - Operating leases |  |  | 0.42 years |
Weighted Average Discount Rate - Operating leases |  |  | 3 | %
|  | Three Months Ended |
|  | June 30, 2020 |
Operating lease cost – amortization of ROU |  | $ | 15,861 |
Operating lease cost – interest expense on lease liability |  | $ | 267 |
The following is a schedule, by years, of maturities of the office lease liabilities as of June 30, 2020:
|  | Operating Leases |
2020 |  | $ | 25,804 |
Total undiscounted cash flows |  |  | 25,804 |
Less: imputed interest |  |  | (193 | )
Present value of lease liabilities |  | $ | 25,611 |
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. Investment Banking Engagement Agreement On October 10, 2019, the Company entered an investment banking engagement agreement with an investment banker firm to engage them as the exclusive lead underwriter for a registered securities offering. The Company shall pay to the investment banker an equity retainer fee of 15,000 shares (post-reverse stock split) of the restricted common stock of the Company (10,000 shares was issued within 10 business days of signing the agreement, and remaining 5,000 shares will be paid upon completion of the offering). The proposed offering amount is $5 million, at closing of the offering, the Company will pay a 7% of the gross offering proceeds and warrants to purchase that number of shares of common stock or units of securities as shall equal 7% of the securities issued and sold by the Company at each closing of the offering. This agreement was renewed on July 22, 2020 for another six months, or the final closing of a transaction, whichever comes first.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121559207&loc=d3e25336-109308 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121559207&loc=d3e25336-109308 + Details
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