Quarterly report pursuant to Section 13 or 15(d)

Commitments

v3.19.3
Commitments
3 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
COMMIMENTS

NOTE 12 – Commiments

 

Lease Agreement

 

In December 2017, the Company renewed a one-year operating lease agreement for its office in Beijing. The lease was to expire on February 28, 2019 and has a monthly rent of RMB 35,192 (or approximately $5,000). The lease was renewed and expired on August 31, 2019.

 

In December 2017, the Company renewed the one-year property management contract. The contract was to expire on February 28, 2019 and has a monthly management fee of RMB 70,384 (or approximately $10,000). The contract was renewed and expired to August 31, 2019.

 

On March 20, 2019, the Company entered into the one-year operating lease agreement for a senior management's dormitory. Pursuant to the lease agreement, the lease expires on March 22, 2020 and has a monthly rent of RMB 5,200 (or approximately $760). Future rental payment due under the lease is RMB 30,781 (or approximately $4,400).

 

On July 30, 2019, the Company entered into an operating lease agreement for its office in Beijing. Pursuant to the lease agreement, the lease will start on October 8, 2019 and expire on October 7, 2022 and has a monthly rent of RMB 225,923 (or approximately $32,000). The lease required a security deposit of three months' rent of RMB677,769 (or approximately $97,000) The Company will receive a six-month rent abatement. Future rental payment due under the lease is RMB6,386,935 (or approximately $910,000).

 

On July 30, 2019, the Company entered into a property service agreement for its office in Beijing. Pursuant to the property service agreement, the agreement commenced on August 9, 2019 and will expire on October 8, 2022, and has a quarterly fee of RMB 202,352 (or approximately $29,000). The deposit was RMB202,352 (or approximately $29,000). Future payment due under the agreement is RMB2,144,777 (or approximately $305,500).

 

The following table summarizes the impact of our operating leasing on our consolidated unaudited financial statements:

 

Consolidated statement of Operations

 

    Three Months Ended September 30,  
    2019  
    (Unaudited)  
Operating lease expense   $ 32,306  

 

Consolidated Balance Sheet

 

   

September 30,
2019

(Unaudited)

 
Right-of-use assets   $ 1,197,819  
Lease liabilities   $ 358,938  
Lease liabilities-non current   $ 838,881  
              
Weighted average remaining lease term     2.95 years  
Weighted average discount rate     4.75 %

 

Consolidated Statement of Cash Flows

 

    Three Months Ended September 30,  
   

2019

(Unaudited)

 
Cash flow from operating activities        
Right-of-use assets recognized in exchange for operating lease liabilities   $ 1,219,937  

 

The total future minimum lease payment and management fee as of September 30, 2019 are payable as follows:

 

Twelve months ending September 30,   Minimum Lease Payment  
2020   $ 450,730  
2021     467,630  
2022     279,459  
2023     -  
2024     -  
Thereafter     -  
Total minimum payments required   $ 1,197,819