LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

12 Months Ended

Dec. 31, 2022

Lease Right-of-use Asset And Lease Liabilities

LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

10. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

On November 11, 2020, the management of the Company through indirect wholly owned subsidiary SCQC Agriculture Co. Limited enter into a tenancy agreement to rent an office with an area of approximate 133 square meter for monthly rental of CNY9,200 (approximate $1,429) for a period of two years.

On December 01, 2022, the management of the Company through indirect wholly owned subsidiary SCQC Agriculture Co. Limited enter into a tenancy agreement to rent an office with an area of approximate 232 square meter for monthly rental of CNY24,900 (approximate $3,604) for a period of two years.

The initial recognition of operating lease right and lease liability as follows:

Right-of-use assets, net as of December 31, 2020	$	30,699
Less: amortization		(16,088	)
Foreign exchange translation		632
Right-of-use assets, net as of December 31, 2021	$	15,243
Lease liability as of December 31, 2020		30,699
Add: imputed interest		1,064
Less: principal repayment		(17,152	)
Foreign exchange translation		632
Lease liability as of December 31, 2021	$	15,243

As of December 31, 2022, operating lease right-of-use assets as follows:

Right-of-use assets, net as of December 31, 2021	$	15,243
New lease recognized for the year ended December 31, 2022		82,685
Amortization for the year ended December 31, 2022		(17,712	)
Foreign exchange translation		(822	)
Right-of-use assets, net as of December 31, 2022	$	79,394

As of December 31, 2022, operating lease liability as follows:

Lease liability as of December 31, 2021	$	15,243
New lease recognized for the year ended December 31, 2022		82,685
Add: imputed interest for the year ended December 31, 2022		598
Less: gross repayment for the year ended December 31, 2022		(18,309	)
Foreign exchange translation		(823	)
Lease liability as of December 31, 2022	$	79,394
Lease liability current portion	$	40,523
Lease liability non-current portion	$	38,871
Maturities of the loan for each of the five years and thereafter are as follows:
2023	$	40,523
2024		38,871

Other information:

	Year ended December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow to operating lease	$	18,309
Remaining lease term for operating lease (years)		1.92
Weighted average discount rate for operating lease		4.75	%