v3.26.1
Lease
9 Months Ended
Sep. 30, 2025
Lease [Abstract]  
Lease

Note 18 — Lease

 

The Company follows ASC 842 Leases. The Company has entered into lease agreements for vehicles, offices and warehouses space in California, Pennsylvania and Texas. $334,675 and $470,716 of operating lease right-of-use assets and $321,205 and $467,982 of operating lease liabilities were reflected on the September 30, 2025 and December 31, 2024 financial statements, respectively.

 

On May 15, 2021, Hydroman entered into a lease agreement of the warehouse in California. The lease term was from May 16, 2021 to May 15, 2022. The lease payments are $22,375 per month. On May 16, 2022, Hydroman extended the lease of the warehouse in California. The new leasing term was from June 16, 2022 to June 15, 2025 and an extra month from May 16, 2022 to June 15, 2022 free of charge. The lease payments are $29,088 per month for the period commencing June 16, 2022 and ending June 15, 2023, $29,960 per month for the period commencing June 16, 2023 and ending June 15, 2024, $30,859 per month for the period commencing June 16, 2024 and ending June 15, 2025. The Company did not renew the lease.

 

On May 28, 2023, Visiontech entered into a lease agreement for a vehicle. The leasing term began on May 28, 2023 and terminated on April 28, 2025 with a first installment of $15,000 and then continuously monthly payment of $1,550.

 

On April 11, 2024, the Company entered into a lease agreement for an office located in California. The lease term was from May 1, 2024 to April 30, 2027. The lease payments are $8,528 per month for the period commencing May 1, 2024 and ending April 30, 2025, $8,784 per month for the period commencing May 1, 2025 and ending April 30, 2026, $9,047 per month for the period commencing May 1, 2026 and ending April 30, 2027.

 

On July 20, 2024, Visiontech entered into a lease agreement for another vehicle. The leasing term began on September 3, 2024 and will terminate on August 3, 2028 with a first installment of $16,100 and then continuously monthly payment of $2,403.

 

On March 11, 2025, NMI entered into a lease agreement for a vehicle. The leasing term began on March 11, 2025 and will terminate on February 11, 2028 with a first installment of $2,800 and then continuously monthly payment of $1,765.

 

On August 8, 2025, NMI entered into a lease agreement for another vehicle. The leasing term began on August 8, 2025 and will terminate on July 8, 2028 with a first installment of $25,827 and then continuously monthly payment of $686.

 

As of September 30, 2025 and December 31, 2024, the weighted-average remaining operating lease term of its existing leases is approximately 2.17 and 2.04 years, respectively. As of September 30, 2025 and December 31, 2024, the average discount rate of its existing leases is approximately 6.96% and 7.14%, respectively.

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30,
2025
   September 30,
2024
   September 30, 
2025
   September 30, 
2024
 
Lease cost  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Operating lease cost (included in Cost of Revenue and Other Expense in the Company’s Statement of Operations)  $52,847   $119,263   $265,447   $287,508 
Other information                    
Cash paid for amounts included in the measurement of lease liabilities   67,701    81,974    122,612    198,208 

 

 

The supplemental balance sheet information related to leases for the period is as follows:

 

   As of
September 30,
2025
   As of
December 31,
2024
 
Operating leases          
Right of use asset   334,675    470,716 
           
Lease Liability – current portion   165,450    262,380 
Lease Liability – net of current portion   155,755    205,602 
Total operating lease liabilities  $321,205   $467,982 

Maturities of the Company’s lease liabilities are as follows:

 

Twelve months ended September 30,  Operating
Lease
 
2026  $182,078 
2027   121,573 
2028   42,113 
Less: Imputed interest/present value discount   (24,559)
Present value of lease liabilities  $321,205