OPERATING LEASES

12 Months Ended

Dec. 31, 2023

Operating Leases

OPERATING LEASES

NOTE 10 – OPERATING LEASES

As of December 31, 2023, the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 6 months to 40 months.

Two of the leases described above were entered with related parties. The operating lease entered with Ms. Qingmei Lin, a related party, is for the premises in Dongguan City, PRC. The agreement covers the period from January 1, 2019 to April 30, 2027 with the monthly rent expense of RMB10,000 (approximately $1,490). The operating lease agreement entered with Mr. Hongwei Ye, another related party, is for the premises in Dongguan City, PRC. The agreement covers the period from October 1, 2023 to September 30, 2026 with the monthly rent expense of RMB960 (approximately $143).

The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 are as follows:

Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) for the years ended	December 31, 2023		December 31, 2022
Related parties	$	16,195	$	20,736
Non-related parties		120,907		150,804

Other information for the years ended	December 31, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease obligations	$	147,001		$	172,425
Weighted average remaining lease term (in years)		2.33			3.11
Weighted average discount rate		3.23	%		3.23	%

Maturities of the Company’s lease obligations as of December 31, 2023 are as follows:

Year ending December 31,
2024	$	142,417
2025		129,968
2026		64,206
2027		5,636
Thereafter		-
Total lease payment		342,227
Less: Imputed interest		(11,244	)
Operating lease obligations	$	330,983

Lease expenses were $137,102 and $171,540 for the years ended December 31, 2023 and 2022, respectively.