Operating Lease

3 Months Ended

Mar. 31, 2025

13.

OPERATING LEASE

The Company has operating leases for its office facilities. The lease is located at 9820 Dino Drive, Suite 110, Elk Grove, California, 95624, which consist of approximately 3,653 square meters. The Company’s

leases have remaining terms of approximately 37 months for a lease term commencing on August 1, 2020 and ended

on August 31, 2023. The lease was renewed for additional 36 months. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The following table provides a summary of leases by balance sheet location as of March 31, 2025 and December 31, 2024:

Assets/liabilities	March 31, 2025		December 31, 2024
Assets
Operating lease right-of-use assets	$	1,735,972	$	1,822,266

Liabilities
Operating lease liability - current	$	363,230	$	355,754
Operating lease liability - non-current		1,372,742		1,466,512
Total lease liabilities	$	1,735,972	$	1,822,266

Cash flow information related to operating leases consists of the following:

	For the three months ended March 31, 2025		For the three months Ended March 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	108,714	$	8,767
Right-of-use assets obtained in exchange for new lease obligations:		-		-

The operating lease expenses for the three months ended March 31, 2025 and 2024 were as follows:

Lease Cost		Classification				For the three months ended March 31, 2025				For the three months ended March 31, 2024
Operating lease expense			General and administrative expenses			$	108,714			$	8,767

Maturities of operating lease liabilities as of March 31, 2025 were as follows:

Maturity of Lease Liabilities	Operating Leases
Within one year		441,853
Within a period of more than one year but not more than two years	$	433,599
Within a period of more than two year but not more than three years		431,557
Within a period of more than three year but not more than four years		444,504
Within a period of more than four years but not more than five years		187,485
More than five years		-
Total lease commitment	$	1,938,998
Less: interest		(203,026	)
Present value of lease payments	$	1,735,972

Lease liabilities include lease and non-lease component such as management fee.

Lease Term and Discount Rate	March 31, 2025			December 31, 2024
Weighted-average remaining lease term (years)
Operating leases		4.33			4.57

Weighted-average discount rate (%)
Operating leases		5	%		5	%