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LEASE AGREEMENT
 12 Months Ended
Dec. 31, 2024
Lease Agreement  
LEASE AGREEMENT

NOTE 6 - LEASE AGREEMENT

 

  On February 19, 2024, the Company entered into Lease Agreement (the “Agreement”) with Tapsak Enterprises LLC dba Virginia Analytical (the “Landlord”) under which it was agreed that the Company will lease from the Landlord a premises located in Front Royal, Virginia area for a monthly rental fee of $2.5 over a period of 3-years commencing March 1, 2024 through February 28, 2027 (the “Initial Lease Period”). Security deposit of $2.5 which represents payment of one month is held by the Landlord which will be return to the Company at the end of the Initial Lease Period.
   
 

In addition, the Company has an option to renew the Initial Lease Period for another two additional periods of 3-years each following the Initial Lease Period (the “Option Term”), following advanced notice as defined in the Agreement. The monthly rental fee over the Option Term shall be the fair market rate determined as what is a comparable cost for similar property in Front Royal, Virginia area.

 

In accordance with the provision of ASC 842, Leases, at the commencement date of the Agreement, the Company recognized the right to use asset equals to lease liability in total amount of $79. The lease liability was measured at the present value of the future lease payments, which are discounted based on an estimate of the incremental interest rate that the Company would be required to pay to borrow a similar amount for a similar period in order to obtain a similar amount on the initial recognition date of the lease.

 

As part of the leasing period, the Company considered only the Initial Lease Period as the realization of the option to extend the period was not considered as reasonably certain.

 

Operating lease:

 

   December 31, 2024 
     
Operating right-of-use asset  $59 
Current operating lease liability  $26 
Non-Current operating lease liability  $33 

 

 

Maturity analysis of the Company’s lease liability:

 

   December 31, 2024 
     
Less than one year  $30 
Between 1-2 years   30 
More than 2 years   5 
      
Total operating lease payments  $65 
Less: imputed interest  $6 
      
Present value of lease liabilities  $59 

 

Additional information on lease

 

The following is a summary of the weighted average remaining lease terms and discount rate for the lease:

 

   December 31, 2024 
Lease term (years)   2.17 
Weighted average discount rate   9.03%