OPERATING LEASE RIGHT OF USE ASSETS AND OPERATING LEASE LIABILITIES

6 Months Ended

Jun. 30, 2025

OPERATING LEASE RIGHT OF USE ASSETS AND OPERATING LEASE LIABILITIES

OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY

NOTE 8 – OPERATING LEASE RIGHT OF USE ASSETS AND OPERATING LEASE LIABILITIES

On August 1, 2019, Yubo Beijing executed a lease agreement with Jiu Si Cheng Investment Management (the “Landlord”) to rent approximately 746 square meters of office space in Beijing China. The lease provided for an initial term of 2 years and 4 months from August 2, 2019 to November 30, 2021 with a right to renew for an additional term of 2 years and 8 months from December 1, 2021 to July 31, 2024. In December 2021, the Company renewed the lease. The lease provided for monthly rent of RMB 166,845 ($23,289) through July 31, 2023 and RMB 176,833 ($24,683) for the year ended July 31, 2024. On July 1, 2024, Yubo Beijing executed an agreement with the Landlord to vacate the space no later than July 31, 2024 (which occurred) and for Yubo Beijing to pay the Landlord past due rent of RMB 2,061,473 ($287,750) in two installments: RMB 500,000 ($69,792) before July 31, 2024 (which occurred) and RMB 1,561,473 ($218,958) before August 31, 2024 (which has not occurred). As of June 30, 2025, Yubo Beijing was past due in the amount of RMB 1,561,473 ($218,958) This amount is included in accounts payable and accrued expenses in the accompanying consolidated balance sheet at June 30, 2025. 

Effective March 1, 2021, Yubo Global executed a lease agreement with Chengdu Liangkang Investment Co. to rent approximately 6,960 square meters of laboratory space in Chengdu China. The lease provided for a lease term of 5 years from March 1, 2021 to February 28, 2026. The lease provided for monthly rent of RMB 299,277 ($41,775) through February 28, 2024 and RMB 317,233 ($44,281) from March 1, 2024 to February 28, 2026. In the fourth quarter of 2022, the lease was terminated with an effective date of September 1, 2021.

Also in the fourth quarter of 2022, effective September 1, 2021, Yubo Jingzhi executed a lease agreement with Sichuan Anyi Hengke Tech Co. to rent approximately 1,282 square meters of laboratory space in the same building in Chengdu China as that relating to the terminated lease discussed in the preceding paragraph. This lease provides for monthly rent of RMB 56,611 ($7,810) from September 1, 2021 to February 28, 2024 and monthly rent of RMB 58,449 ($8,159) from March 1, 2024 to February 28, 2026. 

On April 1, 2024, Yubo Shenzhen signed two leases with Shenzhen Material Group Limited

· 712 square meter office space at Unit 605-09, 6th Floor, Material Holdings Landmark Building Shenzhen at a monthly rent of RMB 97,686 ($13,476). The lease began April 1, 2024 and ends on March 15, 2026. The lease is terminated effective January 24, 2025. The termination caused a decrease in right-of-use balance and total future lease payments.

· 160 square meter office space at Shenzhen HALO Plaza Phase 3, 2nd Floor, 205 at a monthly rent of RMB 17,280 ($2,412). The lease began April 1, 2024 and ends on November 17, 2025.

On August 5, 2024, Yubo Beijing executed a lease agreement with Beijing Bohui Business Management Services Co. Ltd. for office space in Beijing China for a term of two years from August 26, 2024 to August 25, 2026. The lease provides for Yubo Beijing to pay landlord a security deposit of RMB 110,000 ($15,354) and to pay monthly rent of RMB 55,000 ($7,677).

At June 30, 2025, the future undiscounted minimum lease payments under the four noncancellable capitalized operating leases are as follows:

	As of June 30, 2025
Year ending December 31, 2025	$	110,112
Year ending December 31, 2026		79,742
Total	$	189,854

The operating lease liabilities totaling $184,893 at June 30, 2025 as presented in the Consolidated Balance Sheet represents the discounted (at a 4.75% estimated incremental borrowing rate) value of the future lease payments of $189,854 at June 30, 2025.

For the three months ended June 30, 2025 and 2024, occupancy expense attributable to leases was $49,723 and $109,289, respectively.

For the six months ended June 30, 2025 and 2024, occupancy expense attributable to leases was $99,446 and $239,937, respectively.