| LEASE LIABILITIES - FINANCE AND OPERATING LEASE |
NOTE
15 – LEASE LIABILITIES - FINANCE AND OPERATING LEASE
The
components of finance lease liabilities were as follows:
SCHEDULE
OF FINANCE LEASE LIABILITIES
| | |
December
31, 2025 | | |
December 31, 2024
(Restated) | |
| | |
| | |
| |
| Total finance lease liability | |
$ | 5,404,546 | | |
$ | 8,432,177 | |
| Less: Current portion | |
| (228,918 | ) | |
| (3,342,293 | ) |
| Finance lease liability,
net of current portion | |
$ | 5,175,628 | | |
$ | 5,089,884 | |
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 contact 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:
SCHEDULE
OF OPERATING LEASE LIABILITIES
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Total Operating lease liabilities | |
$ | 7,014,947 | | |
$ | 7,433,452 | |
| Less: Current portion | |
| (523,847 | ) | |
| (491,850 | ) |
| Operating lease liabilities,
net of current portion | |
$ | 6,491,100 | | |
$ | 6,941,602 | |
The
components of lease cost were as follows:
SCHEDULE
OF LEASE COST
| | |
December
31, 2025 | | |
December
31, 2024 (Restated) | |
| Finance lease cost: | |
| | | |
| | |
| - Amortization of right-of-use
assets | |
$ | 3,124,602 | | |
$ | 3,045,602 | |
| - Interest on lease liabilities | |
| 239,508 | | |
| 200,025 | |
| Operating lease cost | |
| 875,201 | | |
| 877,809 | |
| Total lease cost | |
$ | 4,239,311 | | |
$ | 4,123,436 | |
Maturities of lease liabilities were as
follows:
SCHEDULE
OF MATURITIES OF FINANCE AND OPERATING LEASE LIABILITIES
| | |
Finance
Lease | | |
Operating
Lease | |
| the next 12 months | |
$ | 267,041 | | |
$ | 833,565 | |
| the next 13 to 24 months | |
| 267,041 | | |
| 841,304 | |
| the next 25 to 36 months | |
| 5,060,315 | | |
| 845,918 | |
| the next 37 to 48 months | |
| 267,041 | | |
| 854,178 | |
| the next 49 to 60 months | |
| 267,041 | | |
| 859,163 | |
| thereafter | |
| — | | |
| 7,522,241 | |
| Total | |
| 6,128,479 | | |
| 11,756,369 | |
| Less: Amount representing
interest | |
| (723,933 | ) | |
| (4,741,422 | ) |
| Present value of net
minimum lease payments | |
$ | 5,404,546 | | |
$ | 7,014,947 | |
A summary of supplemental information
related to leases is listed as follows:
SCHEDULE
OF SUPPLEMENTAL INFORMATION RELATED TO LEASES
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Weighted average remaining lease term: | |
| | | |
| | |
| Finance leases | |
| 15.7
years | | |
| 16.2
years | |
| Operating leases | |
| 19.6
years | | |
| 19.6
years | |
| Weighted average discount rate: | |
| | | |
| | |
| Finance leases | |
| 4.53 | % | |
| 4.62 | % |
| Operating leases | |
| 4.90 | % | |
| 4.90 | % |
Supplemental cash
flow information related to leases was as follows:
SCHEDULE
OF SUPPLEMENTAL CASH FLOW INFORMATION
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Cash paid for amounts included in measurement
of lease liabilities : | |
| | | |
| | |
| -Operating cash flows from operating
leases | |
$ | 826,761 | | |
$ | 894,351 | |
| -Financing cash flows from finance leases | |
$ | 262,778 | | |
$ | 31,866,665 | |
| | |
| | | |
| | |
| Non-cash information on lease liabilities arising
from obtaining right-of-use assets: | |
| | | |
| | |
| -Finance leases | |
$ | — | | |
$ | 38,636,330 | |
| -Operating leases | |
$ | — | | |
$ | — | |
|