Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v3.21.2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 15 – COMMITMENTS AND CONTINGENCIES

 

Severance payments

 

The Company has employment agreements with certain employees that provide severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. The Company has estimated its possible severance payments of approximately $10,000 as of December 31, 2020 and 2019, which have not been reflected in its consolidated financial statements. 

 

Operating lease

 

See note 10 for related party operating lease commitment.

 

Rental payment

 

On March 1, 2018, the Company entered into a lease agreement (the “Lease Agreement”) for office space in Hong Kong. Pursuant to the Lease Agreement, the monthly payments are HK$298,500 (approximately US$38,000). The Lease Agreement expired on February 28, 2021.

   

For the years ended December 31, 2020, 2019 and 2018, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $461,786, $457,098 and $457,063, respectively.

 

As of December 31, 2020, future minimum lease payments on operating leases were as follows:

 

    December 31,
2020
 
Maturity of lease liabilities    
2021   $ 64,975  
Total minimum lease payments   64,975  
Imputed interest     (32,626 )
Present value of minimum lease payments   $ 32,349  

 

The remaining lease terms (in years) and discount rates consisted of the following:

 

    December 31,
2020
 
Lease term and discount rate      
Remaining operating lease term     0.16  
Discount rate     5.13 %