NOTE 7  COMMITMENTS AND CONTINGENCIES - LEASE On March 1, 2018, the Company began occupying its current corporate headquarters at 2960 West Sahara Avenue, Las Vegas, NV 89102. The Company signed a five-year sublease with United Power, an affiliate of the Company by reason of common ownership with Lei Pei, the Company's sole officer and director and majority shareholder, at a base monthly rent of $15,000, plus a possible increase of up to 3% each year based on increases, if any, of the Consumer Price Index. The building is owned by Future Property Limited, another affiliate of the Company due to common ownership. Future entered into a lease with United Power, and the Company then sublet the space from United Power. The Company is occupying the space for executive and administrative offices. Rent expense for the three and nine months ended February 29, 2020 and February 28, 2019 was $45,000 and $48,479, and $135,000 and $138,479, respectively. The Company has accounted for the lease under ASC 842, as follows: The components of lease expense were as follows: For the Nine Months Ended February 29, 2020 Operating lease cost: Amortization of assets $ 102,822 Interest on lease liabilities 32,178 Total operating lease cost $ 135,000 Supplemental balance sheet information related to leases was as follows: February 29, 2020 Operating lease: Operating lease assets $ 478,677 Current portion of operating lease obligation $ 147,019 Noncurrent operating lease obligation 331,658 Total operating lease obligation $ 478,677 Weighted average remaining lease term: Operating leases 3.0 years Weighted average discount rate: Operating lease 8.00 % Supplemental cash flow and other information related to operating leases was as follows: For the Nine Months Ended February 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 135,000 Future minimum annual lease payments required under the operating lease and the present value of the net minimum lease payments are as follows at February 29, 2020 : For the Fiscal Year Minimum Lease Ended May 31: Commitments 2020 * $ 45,000 2021 180,000 2022 180,000 2023 135,000 Total payments $ 540,000 Amount representing interest $ (61,323 ) Lease obligation, net 478,677 Less current portion (147,019 ) Lease obligation  long term $ 331,658  * Liability pertains to the remaining three-month period from March 1, 2020 through May 31, 2020.