NOTE 8 – OPERATING LEASE RIGHT-OF-USE ASSETS

The Company has the rights to use certain parcels of land located in Shouguang, PRC, through lease agreements signed with local townships or the government authority. For parcels of land that are collectively owned by local townships, the Company cannot obtain land use rights certificates. The parcels of land of which the Company cannot obtain land use rights certificates covers a total of approximately 34.95 square kilometers at June 30, 2025.

As of June 30, 2025, the total operating lease ROU assets was $5,937,515.

The total operating lease cost for the three-month periods ended June 30, 2025 and 2024 was $217,301 and $222,685, respectively.

The total operating lease cost for the six-month periods ended June 30, 2025 and 2024 was $435,102 and $440,030, respectively.