XML 26 R15.htm IDEA: XBRL DOCUMENT

LEASES

3 Months Ended

Mar. 31, 2026

NOTE 6 - LEASES

As of March 31, 2026, the Company has an operating lease agreement for one office space in Hong Kong, with a non-cancellable term of one year commencing from March 15, 2026, to March 14, 2027, after a cancellable term of 1one year expired on March 14, 2026, and has a finance lease for a motor vehicle in Malaysia, with a term of 5five 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 ended March 31, 2026, and 2025 are as follows:

	2026			2025
	Three Months Ended March 31,
	2026			2025
	(Unaudited)			(Unaudited)
Lease costs
Operating lease costs:
Rental expenses (1)	$	23,435		$	24,477
Other rental expenses (2)		4,061			4,177
Total operating lease costs		27,496			28,654
Finance lease costs:
Interest expenses	$	192		$	236
Total finance lease costs		192			236
Total lease costs	$	27,688		$	28,890

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Rental payment - operating leases	$	23,435		$	24,477
Interest repayment - finance leases		192			236
Principal repayment - finance leases		1,109			922
Total cash paid	$	24,736		$	25,635
Non-cash activity:
Balance payment of ROU asset by finance lease liabilities	$	10,216		$	13,187
Weighted average remaining lease term (in years):
Operating leases		0.95			0.95
Finance leases		2.17			3.17
Weighted average discount rate:
Operating leases		4.0	%		4.0	%
Finance leases		6.9	%		6.9	%

(1)	Rental expenses include amortization of $23,067 and $24,041 and interest expenses of $368 and $436 during the three months ended March 31, 2026, and 2025, 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 ended March 31, 2026, and December 31, 2025, is as follows:

	As of March 31, 2026		As of December 31, 2025
	(Unaudited)		(Audited)
Assets
Long-term operating lease ROU assets, net (1)	$	72,255	$	19,890
Long-term finance lease ROU asset, net (2)		14,194		15,794
Total ROU assets	$	86,449	$	35,684

Liabilities
Current portion of operating lease liabilities	$	72,255	$	19,890
Current portion of finance lease liabilities		4,529		4,442
Total current lease liabilities		76,784		24,332

Long-term finance lease liabilities		5,687		6,833
Total long-term lease liabilities		5,687		6,833
Total lease liabilities	$	82,471	$	31,165

(1)	Operating lease ROU assets are measured at cost of $523,028 and $447,497 less accumulated amortization of $450,773 and $427,607 as of March 31, 2026, and December 31, 2025, respectively.

(2)	Finance lease ROU assets are measured at cost of $28,898 less accumulated amortization of $14,704 and $13,104 as of March 31, 2026, and December 31, 2025, respectively.

Maturities of the Company’s lease liabilities as of March 31, 2026, are as follows:

	Operating leases			Finance leases
Year ending December 31,
2026 (remaining 9 months)	$	57,970		$	3,817
2027		15,791			5,089
2028		-			2,117
Total future minimum lease payments		73,761			11,023
Less: Imputed interest / present value discount		(1,506	)		(807	)
Present value of lease liabilities	$	72,255		$	10,216

Lease obligations
Current lease obligations	$	72,255		$	4,529
Long-term lease obligations		-			5,687
Total lease obligations	$	72,255		$	10,216

For the three months ended March 31, 2026, total lease costs were $27,688, including operating lease costs of $27,496 and finance lease costs of $192, respectively. 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.