| Operating and Finance Leases |
NOTE 11 - 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:
| |
|
2022 |
|
|
2021 |
|
| |
|
(Unaudited) |
|
|
|
|
| Weighted-average remaining lease term |
|
|
|
|
|
|
| Operating lease |
|
|
0.54 Year |
|
|
|
0.81 Year |
|
| Finance lease |
|
|
2.10 Years |
|
|
|
3.10 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 September 30, 2022 and December 31, 2021: |
Operating Leases
| |
|
September
30,
2022 |
|
|
December 31,
2021 |
|
| |
|
(Unaudited) |
|
|
|
|
| Right-of-use assets |
|
$ |
123,882 |
|
|
$ |
177,994 |
|
| Lease liability – current |
|
$ |
135,861 |
|
|
$ |
376,027 |
|
| Lease liability – non-current |
|
$ |
30,079 |
|
|
$ |
36,639 |
|
Finance Leases
| |
|
September
30,
2022 |
|
|
December 31,
2021 |
|
| |
|
(Unaudited) |
|
|
|
|
| Property and equipment, at cost |
|
$ |
56,771 |
|
|
$ |
56,770 |
|
| Accumulated depreciation |
|
|
(34,370 |
) |
|
|
(25,529 |
) |
| Property and equipment, net |
|
$ |
22,401 |
|
|
$ |
31,241 |
|
| |
|
|
|
|
|
|
|
|
| Lease liability - current |
|
$ |
10,399 |
|
|
$ |
11,481 |
|
| Lease liability – non-current |
|
|
14,870 |
|
|
|
26,013 |
|
| Total finance lease liabilities |
|
$ |
25,269 |
|
|
$ |
37,494 |
|
The components
of lease expense are as follows within the unaudited consolidated statements of operations and comprehensive loss for the three months
and nine months periods ended September 30, 2022 and 2021:
Operating Leases
| |
|
Three
Months Ended |
|
|
Nine
Months Ended |
|
| |
|
September
30,
2022 |
|
|
September
30,
2021 |
|
|
September
30,
2022 |
|
|
September
30,
2021 |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
| Lease expense |
|
$ |
32,710 |
|
|
$ |
54,399 |
|
|
$ |
124,376 |
|
|
$ |
166,989 |
|
| Sublease rental income |
|
|
(19,200 |
) |
|
|
(3,643 |
) |
|
|
(52,858 |
) |
|
|
(9,206 |
) |
| Net lease expense |
|
$ |
13,510 |
|
|
$ |
50,756 |
|
|
$ |
71,518 |
|
|
$ |
157,783 |
|
Finance Leases
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30,
2022 |
|
|
September 30,
2021 |
|
|
September 30,
2022 |
|
|
September 30,
2021 |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
| Amortization of right-of-use asset |
|
$ |
2,845 |
|
|
$ |
3,049 |
|
|
$ |
8,840 |
|
|
$ |
9,106 |
|
| Interest on lease liabilities |
|
|
274 |
|
|
|
401 |
|
|
|
932 |
|
|
|
1,281 |
|
| Total finance lease cost |
|
$ |
3,119 |
|
|
$ |
3,450 |
|
|
$ |
9,772 |
|
|
$ |
10,387 |
|
Supplemental cash flow information related
to leases for the nine-month periods ended September 30, 2022 and 2021 is as follows:
| |
|
September 30,
2022 |
|
|
September 30,
2021 |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
| Operating cash outflows from operating leases |
|
$ |
47,774 |
|
|
$ |
87,994 |
|
| Operating cash outflows from finance lease |
|
$ |
8,321 |
|
|
$ |
8,249 |
|
| Financing cash outflows from finance lease |
|
$ |
932 |
|
|
$ |
1,281 |
|
| Leased assets obtained in exchange for lease liabilities: |
|
|
|
|
|
|
|
|
| Operating leases |
|
$ |
74,795 |
|
|
$ |
28,197 |
|
Maturity of lease liabilities:
Operating Leases
| |
|
Related
Party |
|
|
Others |
|
|
Total |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
| October 1, 2022 – September 30, 2023 |
|
$ |
- |
|
|
$ |
99,284 |
|
|
$ |
99,284 |
|
| October 1, 2023 – September 30, 2024 |
|
|
- |
|
|
|
30,861 |
|
|
|
30,861 |
|
| Total lease payments |
|
$ |
- |
|
|
$ |
130,145 |
|
|
$ |
130,145 |
|
| Less: Imputed interest |
|
|
- |
|
|
|
(5,110 |
) |
|
|
(5,110 |
) |
| Present value of lease liabilities |
|
$ |
- |
|
|
$ |
125,035 |
|
|
$ |
125,035 |
|
| Current portion |
|
|
- |
|
|
|
(94,956 |
) |
|
|
(94,956 |
) |
| Non-current portion |
|
$ |
- |
|
|
$ |
30,079 |
|
|
$ |
30,079 |
|
Finance Leases
| |
|
Total |
|
| |
|
(Unaudited) |
|
| October 1, 2022 – September 30, 2023 |
|
$ |
11,184 |
|
| October 1, 2023 – September 30, 2024 |
|
|
11,184 |
|
| October 1, 2024 – September 30, 2025 |
|
|
4,079 |
|
| Total lease payments |
|
$ |
26,447 |
|
| Less: Imputed interest |
|
|
(1,178 |
) |
| Present value of lease liabilities |
|
$ |
25,269 |
|
| Current portion |
|
|
(10,399 |
) |
| Non-current portion |
|
$ |
14,870 |
|
|