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Operating leases | 12 Months Ended
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Dec. 31, 2023
Operating Leases [Abstract] |
Operating leases | Note 14 – Operating leases The Company entered into operating lease agreements for factory buildings, office spaces and employee dormitories including lease agreements with its related party, with various initial term expiration dates through 2030 and various renewal and termination options. None of the amounts disclosed below for these leases contains variable payments, residual value guarantees or options that were recognized as part of the right-of-use assets and lease liabilities. As the Company’s leases did not provide an implicit discount rate, the Company used an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. As of December 31, 2023 and 2022, the Company recognized operating lease liabilities, including current and noncurrent, in the amount of US$6,676,300 and US$7,257,144, respectively, and the corresponding operating lease right-of-use assets of US$6,150,732 and US$5,862,748, respectively. Also see Note 18 for related party operating lease commitments. The following components of lease cost are included in the Company’s consolidated statements of operations and comprehensive income (loss):
|  | For the year ended December 31, |  |  | For the year ended December 31, |  |  | For the year ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Operating lease cost |  | $ | 2,053,911 |  |  | $ | 1,948,051 |  |  | $ | 1,177,689 |
Short-term lease cost |  |  | 18,404 |  |  |  | 35,710 |  |  |  | 117,118 |
Total lease cost |  | $ | 2,072,315 |  |  | $ | 1,983,761 |  |  | $ | 1,294,807 |
Supplemental cash flow information related to operating leases was as follows:
|  | For the year ended |  |  | For the year ended |  |  | For the year ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 2,692,699 |  |  | $ | 1,559,148 |  |  | $ | 1,414,151 |
Supplemental lease cash flow disclosure |  |  |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities |  |  | 1,801,664 |  |  |  | 5,394,251 |  |  |  | 3,387,501 |
Supplemental balance sheet information related to operating leases was as follows:
|  | As of |  |  | As of |
|  | December 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Operating lease right-of-use assets |  | $ | 6,119,535 |  |  | $ | 5,343,608 |
Operating lease right-of-use assets – related parties |  |  | 31,197 |  |  |  | 519,140 |
Total operating lease right-of-use assets |  | $ | 6,150,732 |  |  | $ | 5,862,748 |
Operating lease liabilities, current |  | $ | 1,764,259 |  |  | $ | 1,217,604 |
Operating lease liabilities – related parties, current |  |  | 28,849 |  |  |  | 283,567 |
Operating lease liabilities, non-current |  |  | 4,880,844 |  |  |  | 5,755,973 |
Operating lease liabilities – related party, non-current |  |  | 2,348 |  |  |  | - |
Total operating lease liabilities |  | $ | 6,676,300 |  |  | $ | 7,257,144 |
Weighted average remaining lease term of operating leases |  |  | 4.90 Years |  |  |  | 6.34 Years |
Weighted average discount rate of operating leases |  |  | 6.5250 | % |  |  | 6.5250 | %
The Company’s maturity analysis of operating lease liabilities, including operating lease liabilities to related parties, as of December 31, 2023 is as follows:
|  | Operating |
|  | Leases |
2024 |  | $ | 2,142,561 |
2025 |  |  | 1,808,714 |
2026 |  |  | 983,979 |
2027 |  |  | 720,780 |
2028 |  |  | 754,036 |
Thereafter |  |  | 1,399,884 |
Total lease payment |  |  | 7,809,954 |
Less: imputed interest |  |  | (1,133,654 | )
Present value of operating lease liabilities |  |  | 6,676,300 |
Less: current obligation |  |  | (1,793,108 | )
Long-term obligation at December 31, 2023 |  | $ | 4,883,192 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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