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Leases

6 Months Ended

Jun. 30, 2024

Note 7 — Leases

The Company has operating leases primarily for corporate offices, warehouses and showrooms. As of June 30, 2024, the Company’s leases have remaining lease terms up to 10.7 years.

The company also purchased an operating lease land from a common control affiliate for manufacturing, which has a remaining lease term up to 48.00 years and can be extended for another 50 years for $1.

For the three months ended June 30, 2024 and 2023, total lease expenses were $702,507 and $690,106, respectively. For the six months ended June 30, 2024 and 2023, total lease expenses were $1,399,020 and $1,352,282, respectively.

The table below presents the operating lease related assets and liabilities recorded on the Company’s consolidated balance sheets:


	As of		As of
	June 30, 2024		December 31, 2023
	USD		USD

Operating lease right-of-use assets	$	13,974,220	$	15,203,576
Operating lease liabilities – current	$	1,732,944	$	1,595,998
Operating lease liabilities – noncurrent		12,526,869		13,674,452
Total operating lease liabilities	$	14,259,813	$	15,270,450

Information relating to the lease term and discount rate are as follows:


	As of	As of
	June 30, 2024	December 31, 2023

Weighted-average remaining lease term
Operating leases	8.9 years	9.4 years
Weighted-average discount rate
Operating leases	5.7%	5.7%

As of June 30, 2024, the maturities of operating lease liabilities were as follows:


For the 12 months ending June 30,
2025	$	2,507,058
2026		2,621,722
2027		2,641,539
2028		2,409,786
2029		2,000,163
Thereafter		6,010,566
Total lease payments		18,190,834
Less: imputed interest		(3,931,021)
Present value of lease liabilities	$	14,259,813