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Commitments
 3 Months Ended
Mar. 31, 2024
Commitments [Abstract]  
COMMITMENTS

15. 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. Upon expiration of the lease, the Company entered a new lease agreement for the same location from January 1, 2024 through December 31, 2026 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:

 

   Three Months Ended 
   March 31,
2024		 
Operating lease cost – amortization of operating lease right-of-use asset  $15,072 
Operating lease cost – interest expense on lease liability  $360 
Weighted Average Remaining Lease Term - Operating leases   2.75 
Weighted Average Discount Rate - Operating leases   5%

 

   Three Months Ended 
   March 31,
2023		 
Operating lease cost – amortization of operating lease right-of-use asset  $15,618 
Operating lease cost – interest expense on lease liability  $389 

  

The following is a schedule, by years, of maturities of the office lease liabilities as of March 31, 2024:

 

For the year ended March 31, 2025,  $61,795 
For the year ended March 31, 2026   61,795 
For the year ended March 31, 2027   30,898 
Total undiscounted cash flows   154,488 
Less: imputed interest   (1,781)
Present value of lease liabilities  $152,707 

 

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.