| Schedule of Operating Lease Related Assets and Liabilities Recorded on the Balance Sheets |
The table below presents the operating lease related
assets and liabilities recorded on the balance sheets.
| | |
June 30,
2025 | | |
December 31,
2024 | |
| ROU lease assets | |
$ | 11,207,618 | | |
$ | 11,021,615 | |
| | |
| | | |
| | |
| Operating lease liabilities – current | |
$ | 2,221,418 | | |
$ | 2,325,390 | |
| Operating lease liabilities – non-current | |
| 9,135,236 | | |
| 9,207,971 | |
| Total operating lease liabilities | |
$ | 11,356,654 | | |
$ | 11,533,361 | |
The weighted average remaining lease terms and
discount rates for all of operating leases were as follows as of June 30, 2025 and December 31, 2024:
| | | June 30,
2025 | | | December 31,
2024 | | | Remaining lease term and discount rate: | | | | | | | | Weighted average remaining lease term (years) | | | 6.74 | | | | 6.75 | | | Weighted average discount rate * | | | 4.41 | % | | | 4.50 | % |
| * | The Company used incremental borrowing rate of 6.98% for its lease contracts entered prior to fiscal year 2022 in the PRC. For lease contracts entered from fiscal year 2022 to the first half of fiscal year 2023, the Company used new incremental borrowing rate of 3.95%. For lease contracts entered from the second half of fiscal year 2023 to fiscal year 2024, the Company used new incremental borrowing rate of 5.00%. For lease contracts entered in the first half of fiscal year 2025, the Company used new incremental borrowing rate of 4.19%. The Company used incremental borrowing rate of 3.75% for its lease contracts entered prior to fiscal year 2024 in the United States, and for lease contracts entered in fiscal year 2024, the Company used new incremental borrowing rate of 8.00%. |
|
| Schedule of Maturities of Lease Liabilities |
The following is a schedule, by years, of maturities
of lease liabilities as of June 30, 2025:
| Remainder of 2025 | |
$ | 1,276,500 | |
| 2026 | |
| 2,323,491 | |
| 2027 | |
| 2,163,875 | |
| 2028 | |
| 1,874,217 | |
| 2029 | |
| 1,644,230 | |
| Thereafter | |
| 3,877,472 | |
| Total lease payments | |
| 13,159,785 | |
| Less: imputed interest | |
| (1,803,131 | ) |
| Present value of lease liabilities | |
$ | 11,356,654 | |
|