NOTE 13 COMMITMENTS AND CONTINGENCIES Economic and Political Risks The majority of the Companys operations are conducted in the PRC. Accordingly, the Companys business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Operating Lease Commitment The Company has entered into the operating lease agreement with Jiangsu Ever-Glory since the inception of the Company. The leased factory is located in Nanjing Shangfang Town. The lease term is one year and can be renewed once a year. On January 1, 2016, the Company renewed the lease which expires on December 31, 2016, at an annual rental of $50,000 (RMB 0.3 million). For the years ended December 31, 2015 and 2014, the Company recognized rental expense in the amounts of approximately $50,334 and $51,088, respectively. The Company has entered into the operating lease agreement with Chuzhou Huarui as La go gos logistics warehouse in 2015. The leased warehouse is located in Chuzhou City in Anhui Province. The lease term is two years and which expires on December 31, 2016, at an annual rental of $240,450 (RMB 1.5 million). For the years ended December 31, 2015 and 2014, the Company recognized rental expense in the amounts of approximately $240,450 and $0, respectively. The Company has entered the operating lease agreement with Kunshan Enjin as La GO GOs Logistics warehouse