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Leases

3 Months Ended

Mar. 31, 2025

Note 8– Leases

Leases are classified as operating leases or finance leases in accordance with ASC 842 Leases. The Company’s operating leases mainly related to the rights to use building and office facilities. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options, which are factored into the Company’s determination of lease payments when appropriate.

	March 31, 2025			December 31, 2024
	(unaudited)
Weighted average remaining lease term:
Operating lease		3.49 years			3.63 years

Weighted average discount rate:
Operating lease		7.56	%		7.53	%

The balances for the operating leases where the Company is the lessee are presented as follows within the consolidated balance sheets:

	March 31, 2025		December 31, 2024
	(unaudited)
Operating lease right-of-use assets, net
Operating lease	$	1,229,793	$	1,342,333

Lease liabilities
Current portion of operating lease liabilities		381,434		427,984
Non-current portion of operating lease liabilities		1,026,387		1,104,552
	$	1,407,821	$	1,532,536

Future lease payments under operating leases as of March 31, 2025 were as follows:

	Operating Leases
FY2025		371,061
FY2026		393,261
FY2027		401,127
FY2028		409,149
FY2029		34,605
Total lease payments	$	1,609,203
Less: imputed interest		201,382
Present value of lease liabilities ⁽¹⁾	$	1,407,821

(1)	As of March 31, 2025, present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to $381,434 and $1,026,387, respectively.

Lease expense for all the Company’s operating leases for the three months ended March 31, 2025 and 2024 were $123,492 and $95,057, respectively. Lease payments for all the Company’s operating leases for the three months ended March 31, 2025 and 2024 were $164,656 and $120,677, respectively.