12. LEASES

The Company leases offices in Maryland, Singapore, Hong Kong, South Korea, China and Taiwan through leased spaces aggregating approximately 25,000 square feet, under leases expiring on various dates from May 2026 to April 2029. The leases have rental rates ranging from $1,321 to $23,020 per month. Our total rent expense under these leases was $185,741 and $235,500 in the three months ended March 31, 2026 and 2025, respectively. The total cash paid for rent under these leases was $274,275 and $222,773 in the three months ended March 31, 2026 and 2025, respectively. The following table outlines the details of lease terms:

 SCHEDULE OF OPERATING AND RENEWED LEASE TERMS RENTAL

The Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) to recognize a right-of-use asset and a lease liability for all the leases with terms greater than twelve months. We elected the practical expedient to not recognize operating lease right-of-use assets and operating lease liabilities for lease agreements with terms less than 12 months. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide a readily determinable implicit rates, we estimate our incremental borrowing rates to discount the lease payments based on information available at lease commencement. Our incremental borrowings rates are at a range from 2.59% to 7.22% in 2026 and 2025, which were used as the discount rates. The Company’s weighted-average remaining lease term relating to its operating leases is 0.92 years, with a weighted-average discount rate of 1.75%. The balances of operating lease right-of-use assets and operating lease liabilities as of March 31, 2026 were $373,960 and $703,421, respectively. The balance of operating lease right-of-use assets and operating lease liabilities as of December 31, 2025 were $494,957 and $910,951, respectively.

The table below summarizes future payments due under these leases as of March 31, 2026.

For the Twelve Months Ending March 31:

 SCHEDULE OF LEASE PAYMENTS

Impairment of Right-of-Use Assets

As of December 31, 2025, the Company recorded impairment on right-of-use assets of $392,733 under operating expenses. Management evaluated the operational results of the Company and identified that certain locations under the Company’s F&B business continue to incur losses and are not expected to generate profits in the foreseeable future. Therefore, the Company impaired the right-of-use assets of $399,615 or those locations during the year ended December 31, 2025. The difference between impairment loss and decrease of right-of-use assets of $6,882 is related to the foreign exchange translation impact.

Security Deposits

Our rental-home lease agreements require tenants to provide a one-month security deposits. The property management company collects all security deposits and maintains them in a trust account. The Company also has obligation to refund these deposits to the renters at the time of lease termination. As of March 31, 2026 and December 31, 2025, the security deposits held in the trust account were $281,855 and $293,135, respectively.