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Leases

9 Months Ended

Sep. 30, 2025

Note 9 – 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.

	September 30, 2025			December 31, 2024
	(unaudited)
Weighted average remaining lease term:
Operating lease		3.33 years			3.63 years

Weighted average discount rate:
Operating lease		7.54	%		7.53	%

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

	September 30, 2025		December 31, 2024
	(unaudited)
Operating lease right-of-use assets, net
Operating lease	$	1,057,858	$	1,342,333

Lease liabilities
Current portion of operating lease liabilities		315,579		427,984
Non-current portion of operating lease liabilities		865,729		1,104,552
	$	1,181,308	$	1,532,536

Future lease payments under operating leases as of September 30, 2025 were as follows:

	Operating Leases
Remaining of FY2025		97,826
FY2026		393,261
FY2027		401,127
FY2028		409,149
FY2029		34,605
Total lease payments	$	1,335,968
Less: imputed interest		154,660
Present value of lease liabilities ⁽¹⁾	$	1,181,308

(1)

As of September 30, 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 $315,579 and $865,729, respectively.

Lease expense for all the Company’s operating leases for the three months ended September 30, 2025 and 2024 were $100,134 and $133,586, respectively. Lease payments for all the Company’s operating leases for the three months ended September 30, 2025 and 2024 were $105,102 and $81,075, respectively.

Lease expense for all the Company’s operating leases for the nine months ended September 30, 2025 and 2024 were $342,150 and $381,791, respectively. Lease payments for all the Company’s operating leases for the nine months ended September 30, 2025 and 2024 were $425,219 and $314,170, respectively.

For the three and nine months ended September 30, 2025, the Company incurred $227,761 and $395,383, respectively, short-term lease expenses. For the three and nine months ended September 30, 2025, the short-term lease payments were $154,000 and $490,056, respectively. The Company did not incur any short-term lease expenses for the three and nine months ended September 30, 2024.