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Operating Leases
 12 Months Ended
Dec. 31, 2024
Operating Leases [Abstract]  
OPERATING LEASES

NOTE 18 — OPERATING LEASES

 

The Company has entered into a commercial operating lease with an independent third party for the use of an office in Hong Kong. The lease has an original term exceeding 1 year, but not more than 3 years with an option to renew a further term of 3 years. The operating leases are included in “Right-of-use asset, net” on the consolidated balance sheets and represents the Company’s right to use the underlying assets during the lease term. The Company’s obligation to make lease payments are included in “Operating lease liabilities” on the consolidated balance sheets.

 

Supplemental balance sheet information related to the operating lease was as follows:

 

   As of December 31, 
   2024   2023 
Operating lease:        
Right-of-use asset  $12,626   $12,512 
Less: accumulated amortization and impairment   (12,626)   (1,004)
Right-of-use asset, net  $
—
   $11,508 
           
Lease liabilities:          
Current lease liabilities  $1,867   $1,229 
Non-current lease liabilities   807    10,646 
Total lease liabilities  $2,674   $11,875 

 

Operating lease expense for the years ended December 31, 2024 and 2023 was approximately $2.6 million and $1.5 million, respectively.

In December 2024, the Company assessed that due to change of operation strategy in its financing service business, the Company believes that the right-of-use asset may not generate economic benefits in the foreseeable future. The Company considered it is reasonably certain not to exercise the renewal option and remeasured the right-of-use assets and corresponding lease liabilities as of the effective date of modification. The Company recorded a reduction in operating right-of-use assets and lease liabilities of approximately $8 million for the year ended December 31, 2024. Consequently, the Company recorded impairment on right-of-use asset of approximately $1.7 million during the year ended December 31, 2024.

 

Other supplemental information about the Company’s operating lease as of December 31, 2024 and 2023 are as follow:

 

   As of December 31, 
   2024   2023 
Weighted average discount rate   5.25%   6.58%
Weighted average remaining lease term (years)   1.42    5.42 

 

Maturities of operating lease liabilities as of December 31, 2024 were as follows:

 

For the year ending December 31,  Operating lease 
2025  $1,952 
2026   814 
Total minimum lease payments   2,766 
Less: imputed interest   (92)
Total operating lease liabilities  $2,674