Quarterly report pursuant to Section 13 or 15(d)

Operating and Finance Leases

v3.20.2
Operating and Finance Leases
3 Months Ended
Mar. 31, 2020
Lease Liability [Abstract]  
Operating and Finance Leases

NOTE 8 - Operating and Finance Leases

 

  A. Lease term and discount rate:

 

The weighted-average remaining lease term (in years) and discount rate related to the leases were as follows:

  

Weighted-average remaining lease term   Unaudited
Operating lease   0.39 Year
Finance lease   4.60 Years
Weighted-average discount rate    
Operating lease   6.00%
Finance lease   3.82%

 

  B. The balances for the operating and finance leases presented as follows within the balance sheet as of March 31, 2020 and December 31, 2019:

 

Operating Leases

 

    March 31,
2020
    December 31,
2019
 
    (Unaudited)        
Right-of-use assets   $ 210,130     $ 302,602  
Lease liability - current   $ 256,168     $ 322,430  

 

Finance Leases

 

    March 31,
2020
    December 31,
2019
 
    (Unaudited)        
Property and equipment, at cost   $ 56,770     $ 56,770  
Accumulated depreciation     (4,659 )     (1,569 )
Property and equipment, net   $ 52,111     $ 55,201  
                 
Lease liability - current   $ 9,932     $ 9,949  
Lease liability – non-current     42,173       45,199  
Total finance lease liabilities   $ 52,105     $ 55,148  

 

The components of lease expense are as follows within the statement of operations and comprehensive loss for the three-month periods ended March 31, 2020 and 2019:

 

Operating Leases

 

    March 31,
2020
    March 31,
2019
 
    (Unaudited)     (Unaudited)  
Lease expense   $ 111,997     $ 115,709  
Sublease rental income     (2,754 )     -  
Net lease expense   $ 109,243     $ 115,709  

 

Finance Leases

 

    March 31,
2020
    March 31,
2019
 
    (Unaudited)     (Unaudited)  
Amortization of right-of-use asset   $ 3,090     $     -  
Interest on lease liabilities     516       -  
Total finance lease cost   $ 3,606     $ -  

 

Supplemental cash flow information related to leases for the three-month periods ended March 31, 2020 and 2019 is as follows:

 

    March 31,
2020
    March 31,
2019
 
    (Unaudited)     (Unaudited)  
Cash paid for amounts included in the measurement of lease liabilities:            
Operating cash outflows from operating leases   $ 65,420     $ 39,871  
Operating cash outflows from finance lease   $ 2,952     $ -  
Financing cash outflows from finance lease   $ 516     $ -  
Leased assets obtained in exchange for lease liabilities:                
Operating leases   $ 15,441     $ 722,423  

 

Maturity of lease liabilities:

 

Operating Leases

 

    Related
Party
    Others     Total  
    (Unaudited)     (Unaudited)     (Unaudited)  
April 1, 2020 – March 31, 2021   $ 11,571     $ 248,640     $ 260,211  
Total lease payments   $ 11,571     $ 248,640     $ 260,211  
Less: Imputed interest     (115 )     (3,928 )     (4,043 )
Present value of lease liabilities   $ 11,456     $ 244,712     $ 256,168  
Current portion     11,456       244,712       256,168  
Non-current portion   $ -     $ -     $ -  

 

Finance Leases

 

    Related
Party
    Others     Total  
    (Unaudited)     (Unaudited)     (Unaudited)  
April 1, 2020 – March 31, 2021   $        -     $ 11,750     $ 11,750  
April 1, 2021 – March 31, 2022     -       11,750       11,750  
April 1, 2022 – March 31, 2023     -       11,750       11,750  
April 1, 2023 – March 31, 2024     -       11,750       11,750  
April 1, 2024 – March 31, 2025     -       10,160       10,160  
Total lease payments   $ -     $ 57,160     $ 57,160  
Less: Imputed interest     -       (5,055 )     (5,055 )
Present value of lease liabilities   $ -     $ 52,105     $ 52,105  
Current portion     -       (9,932 )     (9,932 )
Non-current portion   $ -     $ 42,173     $ 42,173