Note 16 – Lease

On June 17, 2013, the Company entered into a lease agreement for office, warehouse, storage, and distribution space in the United States with a five year term, commencing on November 1, 2013 and expiring on October 31, 2018. The lease agreement also provided an option to extend the term for an additional six years. On April 23, 2018, the Company extended the lease for another three years with an expiration date of October 31, 2021. On October 15, 2021, the Company extended the lease for another five years with an expiration date of October 31, 2026. The initial monthly rental payment is $42,000 with an annual 3% increase.

The Company has entered into several lease agreements for office and warehouse space in Commerce, California and showroom space in Las Vegas, Nevada and High Point, North Carolina (see Note 11) on monthly or annual terms.

On July 15, 2019, Nova Malaysia entered into a sublease agreement for warehouse space with a two-year2 term, expiring on July 14, 2021. The initial monthly rental payment was 20,000 Malaysia Ringgit ($4,232) and was increased to 35,000 Malaysia Ringgit ($7,406) effective August 1, 2020. On July 15, 2021, Nova Malaysia extended the lease for another two years with an expiration date of July 31, 2023. Nova Malaysia did not extend this lease after July 31, 2023.

On October 29, 2019, Nova Malaysia entered into a lease agreement for a showroom with a two-year2 term, commencing on December 1, 2019 and expiring on November 30, 2021. On November 26, 2021, Nova Malaysia extended the lease to November 30, 2022 with an option for renewal for another term of 24 months. On October 4, 2022, Nova Malaysia renewed the lease for two years to November 30, 2024. The monthly rental payment is 9,280 Malaysia Ringgit. Nova Malaysia did not extend the lease agreement after November 30, 2024 and Nova Malaysia leases the showroom on month-to-month basis.

On August 20, 2020, Nova Malaysia entered into a sublease agreement for an office and service center with a two-year2 term, commencing on September 1, 2020 and expiring on August 31, 2022. On July 29, 2022, Nova Malaysia extended the lease for another two years with an expiration date of August 31, 2024. The monthly rental payment is 30,000 Malaysia Ringgit. Nova Malaysia did not extend the lease after August 31, 2024.

On August 31, 2022, the Company entered into an auto lease agreement with an unrelated auto dealership with a three3-year term. The lease commencement date was August 31, 2022. The required rental payment is $1,902 monthly, with payments due on the 30th day of each month, and expired on July 31, 2025. The Company did not renew the lease.

On November 8, 2024, the Company entered into an auto lease agreement with an unrelated auto dealership with a three3-year term. The lease commencement date was December 23, 2024. The required rental payment is $1,849 monthly, with payments due on the 23rd day of each month, and expiring on November 23, 2027.

On December 9, 2024, Nova Malaysia entered into an agreement for a warehouse with a two2-year term, commencing on November 15, 2024 and expiring on November 14, 2026. The lease agreement also provided an option to extend the term for an additional two years. The monthly rental payment is 19,200 Malaysia Ringgit. On July 1, 2025, the Company terminated the lease.

On July 1, 2025, the Company, as a sublessor, entered into a warehouse space sublease agreement with an unrelated third party with a three3-month term. The sublease commencement date was July 1, 2025. The required rental payment is $26,000 monthly. The sublessee agreed to prepay totaling $78,000 for July, August and September 2025 with security deposit of $50,000 on the commencement day. The sublease expired on September 30, 2025.

Operating lease expense for the years ended December 31, 2025 and 2024 was as follows:

 Schedule of Lease Cost

The following is a schedule, by years, of maturities of operating lease liabilities as of December 31, 2025:

 Schedule of Operating Lease Liability Maturity

Lease Term and Discount Rate

 Schedule of Lease Term and Discount Rate

Supplemental cash flow information related to leases where the Company was the lessee for the years ended December 31, 2025 and 2024 was as follows:

 Schedule of Supplemental Cash Flow Information Related to Leases

Finance lease expense for the years ended December 31, 2025 and 2024 was as follows:

 Schedule of Finance Lease Expenses

The following is a schedule, by years, of maturities of finance lease liabilities as of December 31:

 Schedule of Finance Lease Liabilities

Lease Term and Discount Rate

 Schedule of Finance Lease Term and Discount Rate

Supplemental cash flow information related to leases where the Company was the lessee for the years ended December 31, 2025 and 2024 was as follows:

 Schedule of Supplemental Finance Cash Flow Information Related to Leases