| Leasing arrangements – lessee |
| 8. | Leasing arrangements – lessee |
| a) | The Group leases offices and multifunctional business machines located in Taiwan and Japan. Lease agreements
are typically made for periods of 2 to 15 years. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes. |
| b) | Short-term leases with a lease term of 12 months or less comprise multifunctional printers and rental
of event venues. |
| c) | The carrying amount of right-of-use assets and the depreciation expenses are as follows: |
| | |
December 31, 2024 | | |
December 31, 2025 | |
| | |
Carrying
amount | | |
Carrying
amount | |
| | |
| | |
| |
| Buildings | |
$ | 5,170,274 | | |
$ | 3,859,294 | |
| Machinery
and equipment | |
| 12,254 | | |
| 12,981 | |
| | |
$ | 5,182,528 | | |
$ | 3,872,275 | |
| | |
Year
ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
Depreciation
expenses | | |
Depreciation
expenses | | |
Depreciation
expenses | |
| | |
| | | |
| | | |
| | |
| Buildings | |
$ | 862,258 | | |
$ | 982,126 | | |
$ | 1,024,008 | |
| Machinery
and equipment | |
| 3,532 | | |
| 5,619 | | |
| 6,414 | |
| | |
$ | 865,790 | | |
$ | 987,745 | | |
$ | 1,030,422 | |
| d) | For the years ended December 31, 2024 and 2025, additions
to right-of-use assets were $584,671 and $7,201, respectively. As of the end of 2025, the Taiwan office leases were renewed. The new
leases term covers January 1, 2026 through December 31, 2028, with an aggregate rental commitment of $1,251,339. |
| e) | The information on profit or loss accounts relating to lease contracts is as follows: |
| | |
Year ended December 31, | |
| | |
2024 | | |
2025 | |
| Items affecting profit or loss | |
| | |
| |
| Interest expense on lease liabilities | |
$ | 66,640 | | |
$ | 65,137 | |
| Expense on short-term lease contracts | |
| 533,654 | | |
| 228,820 | |
| Losses (gain) on lease modification | |
| (3,273 | ) | |
| 41,120 | |
| f) | For the years ended December 31, 2024 and 2025, the Group’s total cash outflow for leases were $1,601,454
and $1,230,580, respectively. |
|