OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY

6 Months Ended

Jun. 30, 2023

OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY

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 current lease provides for monthly rent of RMB 166,845 ($23,001 through July 31, 2023 and RMB 176,833 ($24,378) for the year ended July 31, 2024.

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 ($41,259) through February 28, 2024 and RMB 317,233 ($43,734) 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 ($7,804) from September 1, 2021 to February 28, 2024 and monthly rent of RMB 58,449 ($8,058) from March 1, 2024 to February 28, 2026.

At June 30, 2023, the future undiscounted minimum lease payments under the two noncancellable leases are as follows:

	As of June 30, 2023
Year ending December 31, 2023	$	202,206
Year ending December 31, 2024		281,436
Year ending December 31, 2025		101,988
Year ending December 31, 2026		16,998
Total	$	602,628

The operating lease liabilities totaling $560,605 at June 30, 2023 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 $602,628 at June 30, 2023.

For the three months ended June 30, 2023 and June 30, 2022, occupancy expense attributable to leases was $52,777 and $299,217, respectively.

For the six months ended June 30, 2023 and June 30, 2022, occupancy expense attributable to leases was $163,594 and $558,492, respectively.