| LEASE LIABILITIES - FINANCE AND OPERATING LEASE |
NOTE 13 – LEASE LIABILITIES - FINANCE AND OPERATING LEASE
The components of finance lease liabilities were as follows:
Lease
Liabilities - Finance and Operating Lease - Schedule of Finance Leased Liabilities
| | |
March 31, | |
December 31, |
| | |
2026 | |
2025 |
| Total finance lease liability | |
$ | 5,551,535 | | |
$ | 5,404,546 | |
| Less: Current portion | |
| (251,900 | ) | |
| (228,918 | ) |
| Finance lease liability, net of current portion | |
$ | 5,299,635 | | |
$ | 5,175,628 | |
The financing lease includes
one contract with a lease term from January 1, 2011 to December 31, 2030, and five contracts with the lease term from June 29, 2024 to
June 28, 2044. All contracts have a non-cancellable lease period of 20 years, and the company has the right to preferentially renew the
lease contract under the same conditions upon the contract expires. However, the Company will decide whether to renew the lease based on
the market operation situation upon the expiration.
The components of operating lease liabilities are as follows:
Lease Liabilities - Finance and Operating Lease - Schedule of
operating Lease Liabilities
| | |
March 31, | |
December 31, |
| | |
2026 | |
2025 |
| Total Operating lease liabilities | |
$ | 6,977,775 | | |
$ | 7,014,947 | |
| Less: Current portion | |
| (382,599 | ) | |
| (523,847 | ) |
| Operating lease liabilities, net of current portion | |
$ | 6,595,176 | | |
$ | 6,491,100 | |
The components of lease cost were as follows:
Lease Liabilities -
Finance and Operating Lease - Schedule of Lease Cost
| | |
| | | |
| | |
| | |
Three-Month Period Ended March 31, |
| | |
2026 | |
2025 |
| Finance lease cost: | |
| | | |
| | |
| - Amortization of right-of-use assets | |
$ | 733,298 | | |
$ | — | |
| - Interest on lease liabilities | |
| 61,290 | | |
| 21,722 | |
| Operating lease cost | |
| 222,161 | | |
| 217,801 | |
| Total lease cost | |
$ | 1,016,749 | | |
$ | 239,523 | |
Maturities of lease liabilities were as follows:
Lease
Liabilities - Finance and Operating Lease - Schedule of Maturities of Lease Liabilities
| | |
Finance Lease | |
Operating Lease |
| the next 12 months | |
$ | 271,262 | | |
$ | 649,624 | |
| the next 13 to 24 months | |
| 5,140,316 | | |
| 854,603 | |
| the next 25 to 36 months | |
| 271,262 | | |
| 861,118 | |
| the next 37 to 48 months | |
| 271,262 | | |
| 867,681 | |
| the next 49 to 60 months | |
| 271,262 | | |
| 874,664 | |
| thereafter | |
| — | | |
| 7,600,870 | |
| Total | |
| 6,225,364 | | |
| 11,708,560 | |
| Less: Amount representing interest | |
| (673,829 | ) | |
| (4,730,785 | ) |
| Present value of net minimum lease payments | |
$ | 5,551,535 | | |
$ | 6,977,775 | |
A summary of supplemental information related to leases is listed as
follows:
Lease
Liabilities - Finance and Operating Lease - Schedule of Supplemental Information Related to Leases
| | |
Three-Month Period Ended March 31, |
| | |
2026 | |
2025 |
| Weighted average remaining lease term: | |
| | | |
| | |
| Finance leases | |
| 15.4 years | | |
| 5.8 years | |
| Operating leases | |
| 19.7 years | | |
| 19.6 years | |
| Weighted average discount rate: | |
| | | |
| | |
| Finance leases | |
| 4.53 | % | |
| 6.70 | % |
| Operating lease | |
| 4.90 | % | |
| 4.90 | % |
Supplemental cash flow information related to leases were as follows:
Lease
Liabilities - Finance and Operating Lease - Schedule of Cash Flow, Supplemental
| | |
| | | |
| | |
| | |
Three-Month Period Ended March 31, |
| | |
2026 | |
2025 |
| Cash paid for amounts included in measurement of lease liabilities : | |
| | | |
| | |
| -Operating cash flows from operating leases | |
$ | 232,677 | | |
$ | 225,321 | |
| -Financing cash flows from finance leases | |
$ | — | | |
$ | — | |
| | |
| | | |
| | |
| Non-cash information on lease liabilities arising from obtaining right-of-use assets: | |
| | | |
| | |
| -Finance leases | |
$ | — | | |
$ | — | |
| -Operating leases | |
$ | — | | |
$ | — | |
|