v3.26.1
LEASE
 6 Months Ended
Jun. 30, 2026
Lease  
LEASE

20. LEASE

 

Lease commitments

 

On July 11, 2024, the Company leased non-commercial vehicle as lessee under finance leases with 5 years lease terms. The Company recognized finance lease liabilities of approximately $72,772, using an effective interest rate of 4.42%, which was determined using the incremental borrowing rate.

 

             
Components of Leases  For the three months ended
June 30,		  

For the six months ended
June 30,

 
   2026   2025   2026   2025 
                 
Operating lease cost  $36,985   $41,629   $86,155   $81,838 
                     
Amortization of finance lease asset  $6,719   $6,287   $13,518   $12,360 
Interest on finance lease liabilities  $550   $660   $1,146   $1,331 

 

Components of leases 

As of

June 30, 2026

  

As of

December 31, 2025

 
         
Weighted average remaining lease term (years)          
Operating lease   0.45    0.75 
Finance lease   3.00    3.50 
           
Weighted average discount rate          
Operating lease   5.21%   5.37%
Finance lease   4.42%   4.42%

 

The five-year maturity of the Company’s operating lease liabilities is as follow:

 

Twelve Months Ending June 30,  Operating lease liabilities   Finance lease liabilities 
         
2027  $14,091   $16,494 
2028   1,328    16,494 
2029   -    16,494 
Thereafter   -    1,373 
Total lease payments   15,419    50,855 
Less: interest   (263)   (3,330)
Present value of lease liabilities  $15,156   $47,525 

 

The Company also leases one shophouse with an expiring term of twelve months or less, which were classified as operation leases. Since the lease terms for these leases were twelve months or less, a lessee is permitted to elect not to recognize lease assets and liabilities. The Company has elected not to recognize lease assets and liabilities on these leases. As of June 30, 2026, the Company’s commitment for minimum lease payment under these operating leases within the next twelve months were $23,616.

 

Short term lease cost for the three months ended June 30, 2026 and 2025 was $12,368 and $2,241, respectively. For the six months ended June 30, 2026 and 2025, the short term lease cost was $14,800 and $4,006, respectively.