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LEASES
 12 Months Ended
Dec. 31, 2025
Leases  
LEASES

8. LEASES

 

The Company previously leased office space under a non-cancellable operating lease agreement, which expired on December 6, 2025. Upon the expiration of this lease, the corresponding right-of-use (“ROU”) assets and lease liabilities were fully derecognized. As of December 31, 2025, the Company had no recognized ROU assets or lease liabilities on the consolidated balance sheets.

 

 

The Company has elected the short-term lease exemption under ASC 842 for all lease arrangements with a lease term of 12 months or less and which do not contain purchase options. For these leases, the Company recognizes lease payments as an expense on a straight-line basis over the lease term and does not recognize ROU assets or lease liabilities.

 

The Company’s current office arrangement is a short-term lease without a formal contract or a specific end date, carrying a monthly expense of HK$15,000. The total short-term lease expense for the years ended December 31, 2023, 2024 and 2025, was HK$180,000, HK$180,000 and HK$180,000 (US$23,077), respectively, which was recorded in general and administrative expenses.

 

The following table summarizes the supplemental consolidated balance sheet information related to operating leases as of December 31, 2024 and 2025:

 

    HK$   HK$   US$ (Note 2(e)) 
    As of December 31, 
    2024   2025 
    HK$   HK$   US$ (Note 2(e)) 
Operating lease right-of-use assets, net    218,130    -    - 
Operating lease liabilities, current    218,130    -    - 
Operating lease liabilities, non-current    -    -    - 
Weighted average remaining lease terms – operating lease (months)    11    -    - 
Weighted average discount rate – operating lease    5.875%   -    - 

 

The following table summarizes the cash flow and expense information related to operating leases for the years ended December 31, 2023, 2024 and 2025:

 

     HK$     HK$   HK$   US$ (Note 2(e)) 
     Year ended December 31, 
     2023     2024   2025 
     HK$     HK$   HK$   US$ (Note 2(e)) 
Cash paid for amounts included in the measurement of lease liabilities:                     
Operating cashflows used in operating lease    235,604      225,293    218,130    27,965 
Right-of-use assets obtained in exchange for new operating lease    461,624      -    -    - 
Operating lease expense    243,006      244,824    224,422    28,772