Note
6 – Leases
On
April 10, 2024, Fengcuiyuan entered into an operating lease agreement to rent an office. The lease has an original term of 2 years expiring
April 24, 2026. Effective January 25, 2025, the lease was modified to change lessee to Rongcheng and an unrelated third party with each
occupying 50% of the premises and responsible for 50% of the lease payment. As a result of the lease modification, right-of-use asset
and related liability were reduced by $46,840.
On
December 18, 2025, Rongcheng entered into an operating lease agreement to rent a storefront. The lease has an original term of 3 years
expiring December 17, 2028.
Balance
sheet information related to the Company’s leases is presented below:
Schedule
of balance sheet information related to company’s leases
| | |
March 31, 2026 | |
| Operating Leases | |
| | |
| Operating lease right-of-use assets | |
$ | 5,872 | |
| | |
| | |
| Operating lease liabilities - current | |
| 2,103 | |
| Operating lease liability – non-current | |
| 2,223 | |
| Total operating lease liabilities | |
$ | 4,326 | |
The
following provides details of the Company’s lease expenses:
Schedule
of company’s lease expenses
| | |
2026 | | |
2025 | |
| | |
Three Months Ended March 31, | |
| | |
2026 | | |
2025 | |
| Operating lease expense | |
$ | 10,876 | | |
$ | 9,652 | |
Other
information related to leases is presented below:
Schedule
of other information related to leases
| | |
Three Months Ended | |
| | |
March 31, 2026 | |
| Cash Paid For Amounts Included In Measurement of Liabilities: | |
| | |
| Operating cash flows from operating leases | |
$ | 12,343 | |
| | |
| | |
| Weighted Average Remaining Lease Term: | |
| | |
| Operating leases | |
| 2.72 years | |
| | |
| | |
| Weighted Average Discount Rate: | |
| | |
| Operating leases | |
| 5.6 | % |
Maturities
of lease liabilities were as follows:
Schedule
of maturities of lease liabilities
| For the 12 months ending December 31: | |
| |
| 2026 (9 months remaining) | |
$ | 2,320 | |
| 2027 | |
| 2,320 | |
| Total lease payments | |
| 4,640 | |
| Less: imputed interest | |
| (314 | ) |
| Total lease liabilities | |
| 4,326 | |
| Less: current portion | |
| (2,103 | ) |
| Lease liabilities – non-current portion | |
$ | 2,223 | |
|