OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS |
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| Operating Lease Liabilities And Right Of Use Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS | 12. OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS
Operating Leases
During the years ended December 31, 2024 and 2023, the Company entered into multiple operating leases for new offices and facility spaces in China. The Company measured and recorded right of use assets and corresponding operating lease liabilities at the lease commencement dates. The discount rate utilized in such present value calculation was 4.75% based on an estimate of the Company’s incremental borrowing rate.
The Company has made operating lease payments in the amount of $229,455 and $153,560 during the years ended December 31, 2024 and 2023. Rent expense charged to operations, which differs from rent paid due to rent credits and to increasing amounts of base rent, is calculated by allocating total rental payments on a straight-line basis over the term of the lease. For the years ended December 31, 2024 and 2023, the Company incurred operating lease expense amounted to $422,019, and $206,806, respectively.
Operating lease liabilities at December 31, 2024 and 2023, consist of:
The following summarizes total future minimum operating lease payments at December 31, 2024:
As of December 31, 2024 and 2023, the weighted average discount rate for these leases is 4.75% and 4.75%, and the weighted average remaining term is 31 months and 41 months, respectively.
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