XML 45 R14.htm IDEA: XBRL DOCUMENT
v3.26.1

LEASES | 3 Months Ended
--- | ---
Mar. 31, 2026
LEASES |
LEASES | NOTE 8 — LEASES The Company leases office spaces from various third parties under non-cancelable operating leases, with terms ranging from 12 to 55 months. The Company considers the renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of ROU assets and lease liabilities. Lease expenses are recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company determines whether a contract is or contains a lease at the inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. On July 19, 2024, the Company entered into a non-cancellable operating lease with an independent third party, Zina Development, LLC, for office space in Irvine, California, comprising approximately 15,000 square feet. The lease term commenced on July 23, 2024, and expires on July 31, 2027. The lease is guaranteed by West Buy Media Inc., a North Carolina Corporation 100% owned by the Company’s chief executive officer, Huan Liu, ensuring the Company’s full payment and performance of all obligations under the lease. Monthly base rent payments under this lease range from $42,000 to $45,000, with scheduled increases over the lease term. The office space is designated for general business operations. In accordance with ASC 842, the Company has recognized a right-of-use asset and a lease liability on its balance sheet related to this operating lease. On April 28, 2023, the Company entered a First Amendment to Lease Agreement (the “Amended Lease”) with one of its landlords, which amended a previous lease agreement between the two parties, whereby the Company leases office space from the landlord with an initial lease term from December 1, 2020 to December 31, 2023. Pursuant to the Amended Lease, the initial lease term was extended for a period commencing January 1, 2024 and expiring February 28, 2027, unless sooner terminated as provided in the Amended Lease. In January, 2025, the Company sent two letters to the lessor requesting to terminate the Amended Lease, as the Company had vacated the property. Subsequent to the foregoing, the Company reviewed the landlord’s internal tenant management system and confirmed that the Company had been removed as an active tenant from the landlord’s system in December 2025, and all the outstanding invoices from February to December 2025 had also been reversed. As a result, the Company’s prior vacating of the premises, and its repeated requests to terminate the Amended Lease, the Company believes that the Amended Lease has been effectively terminated. During the year ended December 31, 2025, the Company recorded a gain of $7,853 for the termination of lease. The Company’s subsidiary, Edward, entered into a Second Amendment to Lease Agreement with its landlord on May 22, 2023, which amended a previous lease agreement and the first amendment between the parties, whereby Edward leases a warehouse from the landlord with an initial lease term from June 1, 2013 to July 31, 2018. The lease term was extended to July 31, 2023 by the first amendment. The second amendment further extended the lease to August 31, 2028. The Company entered into a lease arrangement beginning January 1, 2024. The lease initially ran month-to-month through August 31, 2024 and continued on a month-to-month basis thereafter. Both operating lease expenses and short-term lease expenses are recognized in general and administrative expenses. The components of lease expenses for the three months ended March 31, 2026 and 2025 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Three Months Ended
​ | ​ | March 31,
​ | ​ ​ ​ | 2026 | ​ ​ ​ | 2025
Leases expenses | ​ | ​ | ​ | ​ | ​ | ​
Operating lease expenses | ​ | $ | 158,225 | ​ | $ | 177,763
Short-term lease expenses | ​ | ​ | 21,624 | ​ | ​ | 30,366
Total leases expenses | ​ | $ | 179,849 | ​ | $ | 208,129
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | March 31, 2026 | ​ ​ ​ | December 31, 2025
Right-of-use assets | ​ | $ | 1,023,424 | ​ | $ | 1,165,517
​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease liabilities – current | ​ | $ | 620,594 | ​ | $ | 594,407
Operating lease liabilities – non-current | ​ | ​ | 419,634 | ​ | ​ | 584,606
Total operating lease liabilities | ​ | $ | 1,040,228 | ​ | $ | 1,179,013
​ The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March 31, 2026 and 2025: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | March 31, 2026 | ​ ​ ​ | March 31, 2025 |
Remaining lease term and discount rate: | ​ | ​ | ​ | ​ | ​
Weighted average remaining lease term (years) | ​ | 1.63 | ​ | 2.63 | ​
Weighted average discount rate * | ​ | 4.1 | % | 5.2 | %
​ *The Company used weighted average incremental borrowing rate of 4.1% per annum for its lease contracts based on the Company’s current borrowings from various financial institutions. During three months ended March 31, 2026 and 2025, the Company incurred total operating lease expenses of $158,225 and $177,763, respectively. The total lease expenses were $179,849 and $208,129 for the year ended March 31, 2026 and 2025. As of March 31, 2026, future maturities of lease liabilities were as follows: ​
​ | ​ | ​ | ​
Fiscal Years | ​ ​ ​ | Amount
2026 | ​ | ​ | 536,193
2027 | ​ | ​ | 503,256
Thereafter | ​ | ​ | 126,976
Total lease payments | ​ | ​ | 1,166,425
Less: imputed interest | ​ | ​ | (126,197)
Present value of lease liabilities | ​ | $ | 1,040,228
​

X
- References No definition available. + Details
Name: | us-gaap_LesseeDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration