Operating Lease

6 Months Ended

Jun. 30, 2026

14. Operating lease

The Company leases office spaces in Wuhan City, Hubei Province of China, with terms of two years. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Leases with initial term of 12 months or less are not recorded on the balance sheet.

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below presents the operating lease related assets and liabilities recorded on the balance sheets:

	As of
	June 30, 2026		December 31, 2025
Operating lease assets:
Operating lease right of use assets	$	64,968	$	-
Total operating lease assets		64,968		-

Operating lease obligations:
Current operating lease liabilities		35,839		-
Non-current operating lease liabilities		27,583		-
Total operating lease obligations	$	63,422	$	-

The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows:

	June 30, 2026
Weighted-average remaining lease term		1.8 years

Weighted-average discount rate		3.00	%

The following table summarizes the maturity of operating lease liabilities as of June 30, 2026:

Twelve months ending June 30,	US$
2027	$	37,140
2028		27,855
Total lease payments		64,995
Less: imputed interest		(1,573	)
Total lease liabilities	$	63,422