LEASE LIABILITY

6 Months Ended

Jun. 30, 2023

Lease Liability

LEASE LIABILITY

5. LEASE LIABILITY

The Company entered into an operating lease for office premises. The lease term is fixed for 2 years. The Company adopted ASC 842, using the modified-retrospective approach as discussed in Note 3, and as a result, recognized a right-of-use asset and a lease liability. The Company uses 1.75% rate to determine the present value of the lease payments.

The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets.

The consolidated balance sheet allocation of assets and liabilities related to operating lease is as follows:

	Consolidated Balance	As of
	Sheets Caption	June 30, 2023		December 31, 2022
Assets	Operating lease right-of-use assets	$	2,737	$	9,046
Liabilities:
Current	Operating lease liability – current	$	2,737	$	9,046
Non-current	Operating lease liability – non-current		–		–
Total lease liabilities		$	2,737	$	9,046

For the six months ended June 30, 2023 and 2022, the Company recorded lease expenses of $6,130 and $2,530 respectively.

The future minimum operating lease commitments for operating leases having initial or non-cancelable terms in excess of one year are as follows:

Year ending June 30,
2024	$	2,737
2025		–
2026		–
2027		–
2028		–
Total minimum lease payments		2,742
Less: interest		5
Total present value of lease liabilities	$	2,737