LEASES

6 Months Ended

Jun. 30, 2023

NOTE 5 – LEASES

The Company’s lease portfolio primarily consists of an office lease. The lease had a term from April 17, 2021 to April 16, 2024. The Company accounts for this operating lease in accordance with ASC 842-20-25-1 by recognizing right-of use assets and lease liability. On October 13, 2022, the Company terminated the lease. The Company has entered into a new office leasing agreement with lease term of 12 months. The Company accounts for this new office lease using short-term lease policy in accordance with ASC 842-20-25-2. Under the short-term lease policy, the Company did not recognize right-of-use assets and lease liability, but instead recognized the lease payments in profit or loss on a straight-line basis over the lease term.

There are not right-of-use assets and lease liability recognized as of June 30, 2023 and December 31, 2022, respectively. There were 0.1 years and 0.8 years of the remaining lease term and were $931 and $6,197 undiscounted lease payments within one year as of June 30, 2023 and December 31, 2022, respectively. There are no discount rate use in the short-term lease accounting policy.

The following table summarizes the lease costs recognized in the unaudited consolidated statements of earnings:

SCHEDULE OF LEASE COST

	2023		2022
	For the Six Months Ended June 30,
	2023		2022
Operating lease cost	$	-	$	3,094
Short-term lease cost		3,896		-
Variable lease cost		-		-
Total lease cost	$	3,896	$	3,094

Tian'an Technology Group Ltd 6-K