LEASE LIABILITIES-FINANCE AND OPERATING LEASE

12 Months Ended

Dec. 31, 2021

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		December 31,			December 31,
	Interest rate		2021			2020
Total finance lease liability		6.7%	$	1,997,955		$	2,105,973
Less: Current portion				(227,429	)		(217,070	)
Finance lease liability, net of current portion			$	1,770,526		$	1,888,903

Interest expenses from capital lease obligations amounted to $135,707 and $135,936 for the years ended December 31, 2021 and 2020, respectively, which were charged to the consolidated statement of comprehensive income (loss).

The components of operating lease liabilities as follows:

	Discount		December 31,			December 31,
	rate		2021			2020
Total Operating lease liabilities		4.89%	$	8,064,162		$	8,499,692
Less: Current portion				(506,579	)		(477,350	)
Operating lease liabilities, net of current portion			$	7,557,583		$	8,022,342

The weighted average remaining operating lease term at December 31, 2021 was 20.3 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 payments for the years ended December 31, 2021 and 2020, respectively, were $848,660 and $765,288.

Maturities of lease liabilities were as follows:

	Finance lease			Operating Lease
Payable within:
the next 12 months	$	294,407		$	697,360
the next 13 to 24 months		294,407			704,862
the next 25 to 36 months		294,407			702,451
the next 37 to 48 months		294,407			710,448
the next 49 to 60 months		294,407			715,159
thereafter		1,177,630			11,095,006
Total		2,649,665			14,625,286
Less: Amount representing interest		(651,710	)		(6,561,124	)
Present value of net minimum lease payments	$	1,997,955		$	8,064,162