8.       LEASES

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

The Company has entered into commercial operating leases with various third parties for the use of leasehold land in Hong Kong. These leases have original terms ranging from 6 to 12 years. These operating leases are included in “Right-of-use Assets” on the unaudited condensed consolidated balance sheets and represent the Company’s right to use the underlying assets during the lease term. The Company’s obligation to make lease payments are included in “Lease liabilities” on the unaudited condensed consolidated balance sheets.

Supplemental unaudited condensed balance sheet information related to operating leases was as follows:

Operating lease expense for the three months ended June 30, 2026 and 2025 was $39,838 and $29,832, respectively.

Operating lease expense for the six months ended June 30, 2026 and 2025 was $79,898 and $59,758, respectively.

Other supplemental information about the Company’s operating leases as of:

Operating lease commitments:

The following table summarizes the future minimum lease payments due under the Company’s operating leases in the next five years: