COMMITMENTS AND CONTINGENCIES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES
Operating Rental Leases
We have relocated our corporate office to 1340 Reynolds Avenue Unit 120, Irvine, CA 92614. On December 1, 2023, the Company signed a lease agreement for a 3000-square foot of office space with Metro Creekside California, LLC. Lease term is thirty-eight months beginning December 1, 2023 and expiring on January 31, 2027. On October 16 of 2023, we signed a sublease agreement to relocate the HRS operations from Costa Mesa to Irvine, California for one year and 7 months commencing December 1, 2023 and ending September 30, 2025. We also signed a temporary storage lease and Due to the short termination clause, we are treating this as a month-to-month lease.
On April 9, 2025, we entered a lease for our HRS operations in City of Irvine, California, on June 4, 2025, we amended this lease for additional area. The lease is for the period from July 1, 2025 through June 30, 2028 with monthly rent of $9,577, with an annual increase of 4% starting from the second year of the lease.
On January 30, 2024, JHJ entered into a lease for the office in Chengdu City (“Chengdu lease”), China from January 30, 2024 to February 28, 2026 and has a monthly rent of RMB 28,200 including the VAT. The lease required a security deposit of RMB 77,120 (or $10,600). The Company received a one-month rent abatement, which was considered in calculating the present value of the lease payments to determine the ROU asset which is being amortized over the term of the lease. On February 5, 2026, JHJ entered into another lease for the office in Chengdu City (“Chengdu lease”), China from February 10, 2026 to March 8, 2028 and has a monthly rent of RMB 11,000 (or $1,621) including the VAT. The lease required a security deposit of RMB 12,525 (or $1,846). The Company received a one-month rent abatement, which was considered in calculating the present value of the lease payments to determine the ROU asset which is being amortized over the term of the lease.
The components of lease costs, lease term and discount rate with respect of these three leases with an initial term of more than 12 months are as the following:
Balance sheet information related to the Company’s operating leases:
The weighted-average remaining lease term and the weighted-average discount rate of the above three leases are as follows:
The following is a schedule, by year of lease payment for above three leases as of June 30, 2026:
Our lease expense for the six months ended June 30, 2026, and 2025 was $80,287 and $119,733 respectively.
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