Commitments and Contingencies

3 Months Ended

Sep. 30, 2020

Commitments And Contingencies

Commitments and Contingencies

25. Commitments and contingencies

On February 23, 2018 the Company entered into lease agreement for a new office space commencing March 1, 2018. The term of the lease is for a (5) Five Years with 1 month free on the 1st year of the term. The monthly rent on the 1st year will be $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease will be $737,367.

Our warehouse along with some office space is located at 20529 East Walnut Drive North, Diamond Bar, California, where we lease approximately 11,627 square feet of combined space. The lease term is for five years and two months ending on April 30, 2025. The current monthly rental payment for the facility is $13,022.

	Three Months Ended
	September 30, 2020
Lease Cost
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)	$	93,071
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2020	$	65,105
Remaining lease term – operating leases (in years)		3.06
Average discount rate – operating leases		10	%
The supplemental balance sheet information related to leases for the periods are as follows:
Operating leases
Right-of-use assets	$	1,040,651
Total operating lease assets	$	1,040,651
Short-term operating lease liabilities	$	279,749
Long-term operating lease liabilities	$	795,863
Total operating lease liabilities	$	1,075,612
Maturities of the Company’s lease liabilities are as follows:
Period ending June 30,		Operating
		Lease
2021	$	280,166
2022		368,400
2023		326,225
2024		172,465
2025		147,446
Total lease payments		1,294,701
Less: Imputed interest/present value discount		(219,089	)
Present value of lease liabilities	$	1,075,612