LEASE LIABILITIES-FINANCE AND OPERATING LEASE

3 Months Ended

Mar. 31, 2025

Lease Liabilities-finance And Operating Lease

LEASE LIABILITIES-FINANCE AND OPERATING LEASE

NOTE 12 – LEASE LIABILITIES-FINANCE AND OPERATING LEASE

The components of finance lease liabilities were as follows:

	Imputed		March 31,			December 31,
	Interest rate		2025			2024
Total finance lease liability		6.7%	$	1,317,183		$	1,293,608
Less: Current portion				(239,771	)		(217,743	)
Finance lease liability, net of current portion			$	1,077,412		$	1,075,865

Interest expenses from a finance lease liability amounted to $21,722 and $24,830 for the three-month periods ended March 31, 2025 and 2024, respectively, were charged to the condensed consolidated statement of loss.

The components of operating lease liabilities as follows:

	Imputed		March 31,			December 31,
	Interest rate		2025			2024
Total operating lease liabilities		4.89%	$	7,308,326		$	7,433,452
Less: Current portion				(498,483	)		(491,850	)
Operating lease liabilities, net of current portion			$	6,809,843		$	6,941,602

The weighted average remaining operating lease term on March 31, 2025 was 17 years and the weighted average discount rates was 4.89%. This discount rates used are based on the base rate quoted by the People's Bank of China and vary with the remaining term of the lease. Lease payment in the three-months ended March 31, 2025 and 2024 was $225,321 and $226,259.

Maturities of lease liabilities were as follows:

	Financial lease			Operating Lease
Payable within:
the next 12 months	$	261,485		$	822,692
the next 13 to 24 months		261,485			828,555
the next 25 to 36 months		261,485			834,455
the next 37 to 48 months		261,485			840,733
the next 49 to 60 months		261,485			847,059
thereafter		261,485			8,063,578
Total		1,568,910			12,237,072
Less: Amount representing interest		(251,727	)		(4,928,746	)
Present value of net minimum lease payments		1,317,183		$	7,308,326