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RIGHT-OF-USE ASSETS

12 Months Ended

Dec. 31, 2025

Note 7 RIGHT-OF-USE ASSETS

The Company adopted ASU No. 2016-02 Leases, on January 1, 2019, the beginning of the fiscal 2019, using the modified retrospective approach. The Company determines whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and to obtain substantially all of the economic benefit from the use of the underlying asset. Some of our leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient. Some of the operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in rental costs related to inflation. Substantially all of our equipment leases and some of our real estate leases have terms of less than one year and, as such, are accounted for as short-term leases as we have elected the practical expedient.

Operating leases are included in the right-of-use lease assets, current lease liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, the incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term

The carrying amount of right-of-use assets by class of underlying asset are as follows:

Schedule of right-of-use assets	December 31, 2025			December 31, 2024
	$			$
At cost:
Equipment		43,453			43,453
Less: Accumulated depreciation		(8,511	)		–
Right-of-use assets, net		34,942			43,453

Right-of-use assets under operating leasing arrangements classified under motor vehicles as of December 31, 2025 and 2024 amounted to $35,942 and $43,453 respectively.

The table below presents the lease-related assets and liabilities recorded on the balance sheet.

	December 31, 2025		December 31, 2024
	$		$
Assets
Finance lease, right-of-use asset, net		34,942		43,453
Right-of-use assets, net		34,942		43,453

Liabilities
Current
Finance lease liability		7,398		6,652

Non-current
Finance lease liability		18,243		24,383

Total Finance lease liabilities		25,641		31,035

Components of Lease Expense

We recognize lease expense on a straight-line basis over the term of the operating leases, as reported within “general and administrative” expense on the accompanying consolidated statement of operations.