XML 34 R18.htm IDEA: XBRL DOCUMENT

Leases

12 Months Ended

Dec. 31, 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.

	December 31, 2025			December 31, 2024

Weighted average remaining lease term:
Operating lease		3.08 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:

	December 31, 2025		December 31, 2024

Operating lease right-of-use assets, net
Operating lease	$	987,988	$	1,342,333

Lease liabilities
Current portion of operating lease liabilities		353,648		427,984
Non-current portion of operating lease liabilities		781,216		1,104,552
	$	1,134,864	$	1,532,536

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

	Operating Leases
FY2026		423,573
FY2027		401,127
FY2028		409,149
FY2029		34,605
Total lease payments	$	1,268,454
Less: imputed interest		133,590
Present value of lease liabilities ⁽¹⁾	$	1,134,864

(1)

As of December 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 $353,648 and $781,216, respectively.

Lease expense for all the Company’s operating leases for the years ended December 31, 2025 and 2024 were $433,089 and $512,937, respectively. Lease payments for all the Company’s operating leases for the years ended December 31, 2025 and 2024 were $528,437 and $404,440, respectively.

For the year ended December 31, 2025, the Company incurred $481,549 short-term lease expenses and the short-term lease payments were $624,011. The Company did not incur any short-term lease expenses for the year ended December 31, 2024.

Effective from December 1, 2025, the Company subleased partial of the lease office space to a third party for the remaining of the head lease term. Since the Company has not been relieved as the primary obligor of the head lease, the Company cannot net the sublease income against its lease payment to calculate the lease liability and right-of-use (“ROU”) asset. The Company records sub-lease income over the term of the subleases on a straight-line basis.

Future sublease income under operating leases as of December 31, 2025 were as follows:

	Operating Leases
FY2026		425,218
FY2027		400,461
FY2028		408,471
FY2029		69,209
Total sublease receivable	$	1,303,359
Less: imputed interest		147,481
Present value of sublease income	$	1,155,878

For the years ended December 31, 2025 and 2024, the Company recorded sublease income of $32,609 and $nil respectively, as other income on the accompanying consolidated statements of operations and comprehensive loss.