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LEASES

3 Months Ended

Mar. 31, 2025

NOTE 5 - LEASES

As of March 31, 2025, the Company has extended an operating lease agreement for one office space in Hong Kong, with a cancellable term of one year commencing from March 15, 2025, to March 14, 2026, after a non-cancellable term of two years expired on March 14, 2025, and has a finance lease for a motor vehicle in Malaysia, with a term of five years, respectively. Other than these leases, the Company does not have any other leases over the term of one year. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our 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 components of lease expense and supplemental cash flow information related to operating leases and finance leases for the periods are as follows:


	Three Months Ended March 31,
	2025			2024
	(Unaudited)			(Unaudited)
Lease costs
Operating lease costs:
Rental expenses (1)	$	24,477		$	24,348
Other rental expenses (2)		4,177			4,764
Total operating lease costs		28,654			29,112
Finance lease costs:
Interest expenses	$	236		$	279
Total finance lease costs		236			279
Total lease costs	$	28,890		$	29,391

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Rental payment - operating leases	$	24,477		$	24,348
Interest repayment - finance leases		236			279
Principal repayment - finance leases		922			809
Total cash paid	$	25,635		$	25,436
Non-cash activity:
Balance payment of ROU asset by finance lease liabilities	$	13,187		$	15,768
Weighted average remaining lease term (in years):
Operating leases		0.95			0.95
Finance leases		3.17			4.17
Weighted average discount rate:
Operating leases		4.0	%		4.0	%
Finance leases		6.9	%		6.9	%

(1)	Rental expenses include amortization of $24,041 and $23,282 and interest expenses of $436 and $1,066 during the three months ended March 31, 2025 and 2024, respectively.

(2)	Other rental expenses represent those rental expenses for leases with a lease term within one year, and government rent and rates related to the leases.

The supplemental balance-sheet information related to leases for the periods is as follows:

	As of March 31, 2025		As of December 31, 2024
	(Unaudited)		(Audited)
Assets
Long-term operating lease ROU assets, net (1)	$	91,576	$	19,929
Long-term finance lease ROU asset, net (2)		18,938		20,272
Total ROU assets	$	110,514	$	40,201

Liabilities
Current portion of operating lease liabilities	$	91,576	$	19,929
Current portion of finance lease liabilities		3,861		3,766
Total current lease liabilities		95,437		23,695

Long-term finance lease liabilities		9,326		10,235
Total long-term lease liabilities		9,326		10,235
Total lease liabilities	$	104,763	$	33,930

(1)	Operating lease ROU assets are measured at cost of $447,556 and $351,829, net of accumulated amortization of $355,980 and $331,900 as of March 31, 2025, and December 31, 2024 respectively.

(2)	Finance lease ROU assets are measured at cost of $28,898, net of accumulated amortization of $9,960 and $8,626 as of March 31, 2025 and December 31, 2024, respectively.

Maturities of the Company’s lease liabilities as of March 31, 2025 are as follows:

	Operating leases			Finance leases
Year ending December 31,
2025 (remaining 9 months)		73,471			3,484
2026		20,013			4,646
2027		-			4,646
2028		-			1,933
Total future minimum lease payments		93,484			14,709
Less: Imputed interest / present value discount		(1,908	)		(1,522	)
Present value of lease liabilities	$	91,576		$	13,187

Lease obligations
Current lease obligations	$	91,576		$	3,861
Long-term lease obligations		-			9,326
Total lease obligations	$	91,576		$	13,187

For the three months ended March 31, 2025, total lease costs were $28,890, including operating lease costs of $28,654 and finance lease costs of $236, respectively. For the three months ended March 31, 2024, total lease costs were $29,391, including operating lease costs of $29,112 and finance lease costs of $279, respectively.