Operating Lease

6 Months Ended

Jun. 30, 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 June 30, 2025 and December 31, 2024:

Assets/liabilities	June 30, 2025		December 31, 2024
Assets
Operating lease right-of-use assets	$	1,648,594	$	1,822,266

Liabilities
Operating lease liability - current	$	370,800	$	355,754
Operating lease liability - non-current		1,277,794		1,466,512
Total lease liabilities	$	1,648,594	$	1,822,266

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

	For the six months ended June 30, 2025		For the six months Ended June 30, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	217,428	$	17,534
Right-of-use assets obtained in exchange for new lease obligations:		-		-

The operating lease expenses for the six months ended June 30, 2025 and 2024 were as follows:

Lease Cost		Classification				For the six months ended June 30, 2025				For the six months ended June 30, 2024
Operating lease expense		General and administrative expenses				$	217,428			$	17,534

Maturities of operating lease liabilities as of June 30, 2025 were as follows:

Maturity of Lease Liabilities	Operating Leases
Within one year		221,426
Within a period of more than one year but not more than two years	$	439,278
Within a period of more than two year but not more than three years		428,376
Within a period of more than three year but not more than four years		441,227
Within a period of more than four years but not more than five years		299,976
More than five years		-
Total lease commitment	$	1,830,283
Less: interest		(181,689	)
Present value of lease payments	$	1,648,594

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

Lease Term and Discount Rate	June 30, 2025			December 31, 2024
Weighted-average remaining lease term (years)
Operating leases		4.50			4.57

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