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Commitments
 6 Months Ended
Jun. 30, 2023
Commitments [Abstract]  
COMMITMENTS

17. COMMITMENTS

 

Lease Commitment

 

On November 20, 2017, Xi’an TCH entered into a lease for its office from December 1, 2017 through November 30, 2020. The monthly rent was RMB 36,536 ($5,600) with quarterly payment in advance. This lease expired in November 2020. The Company entered a new lease for the same location from January 1, 2021 through December 31, 2023 with monthly rent of RMB 36,536 ($5,600), to be paid every half year in advance.

 

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,
2023		 
Operating lease cost – amortization of ROU  $30,863 
Operating lease cost – interest expense on lease liability  $774 
Weighted Average Remaining Lease Term - Operating leases   0. 5 years 
Weighted Average Discount Rate - Operating leases   5%

 

   Six Months Ended 
   June 30,
2022		 
Operating lease cost– amortization of ROU  $31,399 
Operating lease cost – interest expense on lease liability  $2,413 

  

   Three Months
Ended
June 30,
2022		 
Operating lease cost – amortization of ROU  $15,245 
Operating lease cost – interest expense on lease liability  $385 

 

   Three Months
Ended
June 30,
2022		 
Operating lease cost – amortization of ROU  $15,359 
Operating lease cost – interest expense on lease liability  $1,193 

 

The following is a schedule, by years, of maturities of the office lease liabilities as of June 30, 2023:

 

For the year ended June 30, 2024,  $30,338 
Total undiscounted cash flows   30,338 
Less: imputed interest   (4)
Present value of lease liabilities  $30,334 

 

Employment Agreement

 

On May 8, 2020, the Company entered an employment agreement with Yongjiang Shi, the Company’s CFO for 24 months. The monthly salary was RMB 16,000 ($2,200). The Company will grant the CFO no less than 5,000 shares of the Company’s common stock annually; however, as of this report date, the Board of Directors and Compensation Committee have not approved the number of shares to be given to the CFO, nor any stock reward agreement has been signed.

 

On May 6, 2022, the Company entered another employment agreement with Mr. Shi for 24 months with monthly salary of RMB 18,000 ($2,500). The Company will grant the CFO no less than 5,000 shares of the Company’s common stock annually; however, as of this report date, the Board of Directors and Compensation Committee have not approved the number of shares to be given to the CFO, nor any stock reward agreement has been signed.