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LEASE
 9 Months Ended
Sep. 30, 2025
Lease  
LEASE

19. LEASE

 

On July 11, 2024, the Company leased non-commercial vehicle as lessee under finance leases with 5 years lease terms. The Company recognized finance lease liabilities of approximately $72,772, using an effective interest rate of 4.42%, which was determined using the incremental borrowing rate.

 

   2025   2024   2025   2024 
Components of Leases 

For the three months ended

September 30,

  

For the nine months ended

September 30,

 
   2025   2024   2025   2024 
                 
Operating lease cost  $43,134   $62,857   $124,972   $159,720 
                     
Amortization of finance lease asset   11,124    11,896    32,768    18,956 
Interest on finance lease liabilities   2,157    2,350    6,597    4,989 

 

Components of leases 

As of

September 30, 2025

  

As of

December 31, 2024

 
         
Weighted average remaining lease term (years)          
Operating lease   0.76    1.49 
Finance lease   3.59    4.34 
           
Weighted average discount rate          
Operating lease   5.5%   5.5%
Finance lease   6.7%   6.7%

 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

19. LEASE (Continued)

 

The five-year maturity of the Company’s operating lease liabilities is as follow:

 

Twelve Months Ending September 30,  Operating lease liabilities   Finance lease liabilities 
         
2026  $122,386   $31,751 
2027   -    31,751 
2028   -    31,751 
2029   -    53,123 
Total lease payments   122,386    148,376 
Less: interest   (2,729)   (20,226)
Present value of lease liabilities  $119,657   $128,150 

 

The Company also leases one office and operation center, and one shophouse with an expiring term of twelve months or less, which were classified as operation leases. Since the lease terms for these leases were twelve months or less, a lessee is permitted to elect not to recognize lease assets and liabilities. The Company has elected not to recognize lease assets and liabilities on these leases. As of September 30, 2025, the Company’s commitment for minimum lease payment under these operating leases within the next twelve months were $87,634.

 

Short term lease cost for the three months ended September 30, 2025 and 2024 was $30,540 and $22,218, respectively. For the nine months ended September 30, 2025 and 2024, the short term lease cost was $75,990 and $43,980, respectively.