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LEASES

12 Months Ended

Dec. 31, 2024

NOTE 5 － LEASES

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

The Company has entered into commercial operating leases with various third parties for the use of offices, retail stores and warehouse in Singapore. These leases have original terms exceeding 1 year, but not more than 3 years. These operating leases are included in “Right-of-use Assets” on the balance sheet and represent the Company’s right to use the underlying assets during the lease term. The Company’s obligation to make lease payments are included in “Lease liabilities” on the balance sheet.

Supplemental balance sheet information related to operating leases was as follows:

	2023		2024
	As of December 31,
	2023		2024

Operating lease:
Right-of-use assets, net		3,111,037		3,250,835

Lease liabilities:
Current lease liabilities		1,237,165		1,437,055
Non-current lease liabilities		2,129,237		2,176,061
Total lease liabilities		3,366,402		3,613,116

Operating lease expense for the years ended December 31, 2022, 2023 and 2024 was $989,581, $1,193,731 and $1,500,752, respectively.

Other supplemental information about the Company’s operating lease as of December 31,

	2023		2024
Weighted average discount rate		3.96-6.56%		3.96-5.25%
Weighted average remaining lease term (years)		0.59-4.67 years		1.00-3.83 years

Operating lease commitments:

The following table summarizes the future minimum lease payments due under the Company’s operating leases in the next four years:

For the year ending December 31,	Amount
2025		1,592,471
2026		1,175,955
2027		1,002,227
2028		117,355
Total minimum lease payments		3,888,008
Less: imputed interest		(274,892	)
Future minimum lease payments		3,613,116