Quarterly report pursuant to Section 13 or 15(d)

Operating and Finance Leases

v3.21.2
Operating and Finance Leases
6 Months Ended
Jun. 30, 2021
Operating and Finance Leases [Abstract]  
Operating and Finance Leases

NOTE 9 - Operating and Finance Leases

 

  A. Lease term and discount rate:

 

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

  

    2021     2020  
Weighted-average remaining lease term   (Unaudited)          
Operating lease     1.03 Years       2.01 Years  
Finance lease     3.35 Years       3.84 Years  
Weighted-average discount rate                
Operating lease     6.00 %     6.00 %
Finance lease     3.82 %     3.82 %

 

  B. The balances for the operating and finance leases are presented as follows within the consolidated balance sheets as of June 30, 2021 and December 31, 2020:

 

Operating Leases

 

    June 30,
2021
    December 31,
2020
 
    (Unaudited)        
Right-of-use assets   $ 279,414     $ 353,442  
                 
Lease liability – current   $ 406,146     $ 346,870  
Lease liability – non-current     80,746       173,308  
Total operating lease liabilities   $ 486,892     $ 520,178  

 

Finance Leases

 

    June 30,
2021
    December 31,
2020
 
    (Unaudited)          
Property and equipment, at cost   $ 56,770     $ 56,770  
Accumulated depreciation     (19,156 )     (13,098 )
Property and equipment, net   $ 37,615     $ 43,672  
                 
Lease liability - current   $ 11,291     $ 11,010  
Lease liability – non-current     31,663       37,135  
Total finance lease liabilities   $ 42,954     $ 48,145  

 

The components of lease expense are as follows within the consolidated statements of operations and comprehensive loss for the six-month periods ended June 30, 2021 and 2020:

 

Operating Leases

 

    Three Months Ended     Six Months Ended  
    June 30,
2021
    June 30,
2020
    June 30,
2021
    June 30,
2020
 
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
Lease expense   $ 54,658     $ 108,348     $ 112,590     $ 220,345  
Sublease rental income     (2,737 )     (2,791 )     (5,563 )     (5,545 )
Net lease expense   $ 51,921     $ 105,557     $ 107,027     $ 214,800  

 

Finance Leases

 

    Three Months Ended     Six Months Ended  
    June 30,
2021
    June 30,
2020
    June 30,
2021
    June 30,
2020
 
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
Amortization of right-of-use asset   $ 3,034     $ 2,841     $ 6,057     $ 5,932  
Interest on lease liabilities     429       496       880       1,012  
Total finance lease cost   $ 3,463     $ 3,337     $ 6,937     $ 6,944  

 

Supplemental cash flow information related to leases for the six-month periods ended June 30, 2021 and 2020 is as follows:

 

    June 30,
2021
    June 30,
2020
 
    (Unaudited)     (Unaudited)  
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash outflows from operating leases   $ 64,517     $ 93,689  
Operating cash outflows from finance lease   $ 5,462     $ 5,926  
Financing cash outflows from finance lease   $ 878     $ 1,012  
Leased assets obtained in exchange for lease liabilities:                
Operating leases   $ 28,197     $ 261,781  

 

Maturity of lease liabilities:

 

Operating Leases

 

    Related
Party
    Others     Total  
    (Unaudited)     (Unaudited)     (Unaudited)  
July 1, 2021 – June 30, 2022   $ 55,757     $ 361,327     $ 417,084  
July 1, 2022 – June 30, 2023    
-
      83,155       83,155  
July 1, 2023 – June 30, 2024    
-
     
-
     
-
 
Total lease payments   $ 55,757     $ 444,482     $ 500,239  
Less: Imputed interest     (1,521 )     (11,826 )     (13,347 )
Present value of lease liabilities   $ 54,236     $ 432,656     $ 486,892  
Current portion     (54,236 )     (351,910 )     (406,146 )
Non-current portion   $
-
    $ 80,746     $ 80,746  

 

Finance Leases

 

    Total  
    (Unaudited)  
July 1, 2021 – June 30, 2022   $ 12,735  
July 1, 2022 – June 30, 2023     12,735  
July 1, 2023 – June 30, 2024     12,735  
July 1, 2024 – June 30, 2025     7,828  
Total lease payments   $ 46,033  
Less: Imputed interest     (3,079 )
Present value of lease liabilities   $ 42,954  
Current portion     (11,291 )
Non-current portion   $ 31,663