LEASES |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | NOTE 11 —LEASES
The Company has operating leases for its one F&B store in South Korea and one F&B store in Singapore as of June 30, 2026. The related lease agreements do not contain any material residual value guarantees or material restrictive covenants. Since the Company’s leases do not provide an implicit rate that can be readily determined, management uses a discount rate based on the incremental borrowing rate. The Company’s weighted-average remaining lease term relating to its operating leases is 1.78 years, with a weighted-average discount rate of 2.06%.
The Company has also utilized the following practical expedients:
The current portion of operating lease liabilities and the non-current portion of operating lease liabilities are presented in the balance sheets. Total lease expenses amounted to $29,822 and $65,550, which were included in general and administrative expenses in the statements of operations for the three months ended June 30, 2026 and 2025, respectively. Total lease expenses amounted to $60,394 and $174,679, which were included in general and administrative expenses in the statements of operations for the six months ended June 30, 2026 and 2025, respectively. Total cash paid for operating leases amounted to $30,038 and $69,075 for the three months ended June 30, 2026 and 2025, respectively. Total cash paid for operating leases amounted to $60,556 and $178,179 for the six months ended June 30, 2026 and 2025, respectively. In addition, the Company leases certain equipment on a short-term (12 months or less) basis. Total short-term lease expense of $1,171 and $6,537 is included in general and administrative expenses for the three months ended June 30, 2026 and 2025, respectively. Total short-term lease expense of $2,383 and $10,298 is included in general and administrative expenses for the six months ended June 30, 2026 and 2025, respectively. Supplemental balance sheet information related to operating leases is as follows:
As of June 30, 2026, the aggregate future minimum rental payments under non-cancelable agreements are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||