5.
LEASES
The
Company had entered into an operating lease agreement for factories located in Taiwan.
SCHEDULE OF OPERATING AND FINANCE LEASE RIGHT-OF-USE ASSETS
| | |
December 31，2025 | | |
June 30，2026 | |
| | |
As of | |
| | |
December 31，2025 | | |
June 30，2026 | |
| | |
| | |
(Unaudited) | |
| Operating lease right-of-use assets, net | |
$ | 279,627 | | |
$ | 251,079 | |
| | |
| | | |
| | |
| Operating lease liabilities, current | |
| 50,084 | | |
| 50,672 | |
| Operating lease liabilities, non-current | |
| 229,543 | | |
| 200,408 | |
| Total operating lease liabilities | |
$ | 279,627 | | |
$ | 251,080 | |
MKDWELL
TECH INC.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
U.S. dollars, except share and per share data)
5.
LEASES-continued
The
components of lease expense were as follows within the consolidated statements of comprehensive loss:
SCHEDULE
OF LEASE EXPENSES
| | |
2025 | | |
2026 | |
| | |
For the six months ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
(Unaudited) | |
| Operating lease: | |
| | | |
| | |
| Operating lease expense | |
$ | 31,458 | | |
$ | 31,708 | |
| Short-term lease expense | |
| 737 | | |
| 2,893 | |
| Total operating lease expenses | |
$ | 32,195 | | |
$ | 34,601 | |
| Total lease expenses | |
$ | 32,195 | | |
$ | 34,601 | |
For
the six months ended June 30, 2025 and 2026, cash paid for operating leases were US$26,791 and US$31,708.
Supplemental
balance sheet information related to leases was as follows:
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES
| | |
As of | |
| | |
December 31，2025 | | |
June 30，2026 | |
| | |
| | |
(Unaudited) | |
| Weighted average discount rate: | |
| | |
| |
| Operating lease | |
| 5.38 | % | |
| 5.38 | % |
| Weighted average remaining lease term: | |
| | | |
| | |
| Operating lease | |
| 60 months | | |
| 54 months | |
As
of June 30, 2026, the future minimum rent payable under non-cancelable operating and financing leases were:
SCHEDULE OF FUTURE MINIMUM RENT PAYABLE UNDER NON-CANCELABLE OPERATING AND FINANCING LEASES
| For the six months ended June 30, | |
Amount | |
| | |
(Unaudited) | |
| The remainder of 2026 | |
$ | 31,476 | |
| 2027 | |
| 62,952 | |
| 2028 | |
| 62,952 | |
| 2029 and thereafter | |
| 125,903 | |
| Total lease payments | |
| 283,282 | |
| Less: imputed interest | |
| (32,202 | ) |
| Total operating lease liabilities, net of interest | |
$ | 251,080 | |
MKDWELL
TECH INC.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
U.S. dollars, except share and per share data)
|