The Group leases office spaces under non-cancelable operating lease agreements. Pursuant to the new lease standard ASC 842-10-55, this lease is treated as operating leases. The Group’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. Management determined the incremental borrowing rate was 7.5% for the lease that began in 2025, respectively. This lease is on a fixed payment basis. None of the leases include contingent rentals.

The Group leases office spaces which expire in June 2028 and the future lease payment under operating leases as of March 31, 2026 was as follows:

Schedule of future lease payments under operating leases

Operating lease costs for the three and six months ended March 31, 2026, were US$13,455 (2025: US$Nil) and US$26,910 (2025: US$Nil), which excluded cost of short-term contracts. Rental expenses related to a short-term lease contract for the three and six months ended March 31, 2026 were US$4,336 (2025: US$16,613) and US$8,604 (2025: US$33,219), respectively.