Operating Leases

6 Months Ended

Jun. 30, 2019

4. Operating leases

As of June 30, 2019, the Company had four real estate operating leases for our office and manufacturing facilities under the terms from one year to ten years. The operating lease for our office facilities in China is an annual lease and the lessor is a related party. The Company made an accounting policy election not to recognize lease asset and liability for this lease after examining the criteria established for leases with related parties with 12 months or shorter. For all other three real estate operation leases, the Company adopted the new standard to recognize lease assets and liabilities.

As of June 30, 2019, the Company recognized additional operating liabilities of $776,875 and Right-of-use assets of $776,875 based on the present value of the remaining minimum rental payments under the current leasing standards for existing operating leases.

	June 30, 2019
Operating lease Right-of-use assets	$	776,875

Operating lease liabilities
Current portion of long-term debt		124,008
Long-term debt		652,867
Total operating lease liabilities	$	776,875

JAKROO INC. 10-Q