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LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

12. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

 

The Company officially adopted ASC 842 for the period on and after January 1, 2019 as permitted by ASU 2016-02. ASC 842 originally required all entities to use a “modified retrospective” transition approach that is intended to maximize comparability and be less complex than a full retrospective approach. On July 30, 2018, the FASB issued ASU 2018-11 to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02 of which permits entities may elect not to recast the comparative periods presented when transitioning to ASC 842. As permitted by ASU 2018-11, the Company elect not to recast comparative periods, thusly.

 

On January 2, 2025, DSwiss Sdn Bhd (subsidiary of the Company) entered into a contract rental agreement to rent an office in Malaysia for a period of 3 years commencing on March 1, 2025 with monthly payment in the amount of RM 12,000 per month over the course of the lease. The Company has an option to renew for an additional period of 3 years after the end of the agreement.

 

As of March 1, 2025, the Company recognized approximately US$161,099, lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of March 1, 2025, with discounted rate of 6.6% adopted from Public Bank Berhad’s base lending rate as a reference for discount rate.

 

A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows.

 

As of June 30, 2025 and December 31, 2024, operating lease right of use asset as follow:

 

   As of
June 30, 2025		   As of
December 31, 2024		 
As of beginning of the period/year  $-   $         - 
Add: New lease commenced on March 1, 2025   161,099    - 
Accumulated amortization   (7,500)   - 
Effect of translation exchange   8,227    - 
Balance as of end of the period/year  $161,826   $- 

 

As of June 30, 2025 and December 31, 2024, the amortization of the operating lease right of use asset are $7,500 and $0 respectively.

 

 

DSWISS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2025

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

As of June 30, 2025, operating lease liability as follow:

 

As of January 1, 2025  $- 
Add: New lease commenced on March 1, 2025   161,099 
Less: gross repayment   (11,025)
Add: imputed interest   3,525 
Effect of translation exchange   8,227 
Balance as of June 30, 2025  $161,826 
Less: lease liability current portion   (20,035)
Lease liability non-current portion  $141,791 

 

Maturities of operating lease obligation as follow:

 

Year ending     
December 31, 2025   13,985 
December 31, 2026   25,274 
December 31, 2027   27,013 
December 31, 2028   28,871 
December 31, 2029   30,856 
December 31, 2030   32,978 
December 31, 2031   2,849 
Total  $161,826 

 

Other information:

 

   As of
June 30, 2025		   As of
December 31, 2024		 
   (unaudited)   (audited) 
Cash paid for amounts included in the measurement of lease liabilities:          
Operating cash flow from operating lease  $11,025   $         - 
Right-of-use assets obtained in exchange for operating lease liabilities   -    - 
Remaining lease term for operating lease (years)   6.5    - 
Weighted average discount rate for operating lease   6.6%   -%

 

As of June 30, 2025 and December 31, 2024, lease expenses were $7,500 and $0 respectively.