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LEASE LIABILITIES-FINANCE AND OPERATING LEASE

3 Months Ended

Mar. 31, 2022

Lease Liabilities-finance And Operating Lease

LEASE LIABILITIES-FINANCE AND OPERATING LEASE

NOTE 10 – LEASE LIABILITIES-FINANCE AND OPERATING LEASE

The components of finance lease liabilities were as follows:

	Imputed		March 31,			December 31,
	Interest rate		2022			2021
Total finance lease liability		6.7%	$	2,040,122		$	1,997,955
Less: Current portion				(262,033	)		(227,429	)
Finance lease liability, net of current portion			$	1,778,089		$	1,770,526

Interest expenses from a finance lease liability amounted to $33,622 and $35,538 for the three-month periods ended March 31, 2022 and 2021, respectively, were charged to the condensed consolidated statement of loss.

The components of operating lease liabilities as follows:

	Imputed		March 31,			December 31,
	Interest rate		2022			2021
Total Operating lease liabilities		4.89%	$	9,191,395		$	8,064,162
Less: Current portion				(481,540	)		(506,579	)
Operating lease liabilities, net of current portion			$	8,709,855		$	7,557,583

The weighted average remaining operating lease term at March 31, 2022 was 20 years and the weighted average discounts rate was 4.89%. This discount rates used are based on the base rate quoted by the People's Bank of China and vary with the remaining term of the lease. Lease payment in the three-months ended March 31, 2022 and 2021 was $257,879 and $204,951.

Maturities of lease liabilities were as follows:

	Financial lease			Operating Lease
Payable within:
the next 12 months	$	295,665		$	918,807
the next 13 to 24 months		295,665			917,814
the next 25 to 36 months		295,665			924,005
the next 37 to 48 months		295,665			930,231
the next 49 to 60 months		295,665			936,860
thereafter		1,182,660			11,969,559
Total		2,660,985			16,597,276
Less: Amount representing interest		(620,863	)		(7,405,881	)
Present value of net minimum lease payments		2,040,122		$	9,191,395