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LEASE LIABILITIES-FINANCE AND OPERATING LEASE

3 Months Ended

Mar. 31, 2023

Lease Liabilities-finance And Operating Lease

LEASE LIABILITIES-FINANCE AND OPERATING LEASE

NOTE 11 – LEASE LIABILITIES-FINANCE AND OPERATING LEASE

The components of finance lease liabilities were as follows:

	Imputed	March 31,			December 31,
	Interest rate	2023			2022
Total finance lease liability	6.7%	$	1,726,156		$	1,675,067
Less: Current portion			(244,685	)		(213,346	)
Finance lease liability, net of current portion		$	1,481,471		$	1,461,721

Interest expenses from a finance lease liability amounted to $28,560 and $33,622 for the three-month periods ended March 31, 2023 and 2022, 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	2023			2022
Total Operating lease liabilities	4.89%	$	8,462,654		$	8,009,091
Less: Current portion			(468,906	)		(433,440	)
Operating lease liabilities, net of current portion		$	7,993,748		$	7,575,651

The weighted average remaining operating lease term at March 31, 2023 was 19 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, 2023 and 2022 was $239,898 and $257,879.

Maturities of lease liabilities were as follows:

	Financial lease			Operating Lease
Payable within:
the next 12 months	$	273,141		$	847,895
the next 13 to 24 months		273,141			853,614
the next 25 to 36 months		273,141			859,366
the next 37 to 48 months		273,141			865,489
the next 49 to 60 months		273,141			871,652
thereafter		819,423			10,186,057
Total		2,185,128			14,484,073
Less: Amount representing interest		(458,972	)		(6,021,419	)
Present value of net minimum lease payments		1,726,156		$	8,462,654