v3.26.1
LEASE
12 Months Ended
Dec. 31, 2025
Lease  
LEASE

19. LEASE

 

Lease commitments

 

On July 11, 2024, the Company leased non-commercial vehicle as lessee under finance leases with 5 years lease terms. The Company recognized finance lease liabilities of approximately $72,772, using an effective interest rate of 4.42%, which was determined using the incremental borrowing rate.

 

 

Components of leases 

As of

December 31, 2025

  

As of

December 31, 2024

 
         
Operating lease cost  $172,213   $155,828 
           
Amortization of finance lease asset   44,150    29,445 
Interest on finance lease liabilities   8,718    7,267 
           
Weighted average remaining lease term (years)          
Operating lease   0.75    1.49 
Finance lease   3.34    4.34 
           
Weighted average discount rate          
Operating lease   5.37%   5.5%
Finance lease   6.81%   6.7%

 

The five-year maturity of the Company’s operating and finance lease liabilities is as follow:

 

Twelve Months Ending December 31, 2025  Operating lease liabilities   Finance lease liabilities 
         
2026  $95,821   $33,038 
2027   8,943    33,038 
2028   -    33,038 
2029   -    47,017 
Total lease payments   104,764    146,131 
Less: interest   (2,222)   (18,887)
Present value of lease liabilities  $102,542   $127,244 

 

The Company also leases one office and operation center, one apartment and one shophouse with an expiring term of twelve months or less, which were classified as operating leases. Since the lease terms for these leases were twelve months or less, a lessee is permitted to elect not to recognize lease assets and liabilities. The Company has elected not to recognize lease assets and liabilities on these leases. As of December 31, 2025, the Company’s commitment for minimum lease payment under these operating leases within the next twelve months were $65,987.

 

Short term lease cost for the years ended December 31, 2025 and 2024 were $107,222 and $65,608 respectively.

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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