Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Note 5 – Leases

On February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The ASU introduces a new leasing model for both lessees and lessors. Topic 842 provides guidance in how to identify whether a lease arrangement exists. Management has evaluated its leasing arrangements and has classified it as an operating leases. Additionally, the lease term of this office leases is two years, however, the Company elected to apply ASC Topic 842 to these leases, because we intend to renew each lease for terms longer than 12 months. As a result of the adoption of ASC Topic 842, the Company recognized a right-of-use asset and operating lease liabilities based on the present value of the minimum rental payments.

Operating Lease Liability

On February 21, 2023, the Company entered into an operating lease for a office space located at Unite 1113 on 11^th Floor, Tower One, Lippo Centre, No. 89 Queensway, Hong Jong with De Monsa Investments Limited. The lease calls for rent payments of HK$ 41,510 plus taxes of HK$6,525 per quarter and an air conditioning and management fee of HK$6,658 per month. In monthly payments. The lease begins February 22, 2023 and expires on February 21, 2025.

The Company has made lease payments in the amount of $23,255 during the six months ended June 30, 2023. As of June 30, 2023, the Company had $122,117 in Right of Use Asset and $122,117 Operating lease liability. As of June 30, 2023, the discount rate for this lease is 5.63% and the weighted average remaining term is 20 months.

Future minimum operating lease payments at June 30, 2023 consist of:

2023		38,544
2024		77,089
2025		12,845
Total minimum lease payments		128,478
Less: present value discount		(6,361	)
		122,117
Current portion of operating lease obligation		69,452
Operating Lease obligation, less current portion	$	52,665