v3.26.3
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases
16. Leases

 

Components of lease cost, weighted average remaining lease terms and discount rates of operating lease consist of the following:

 

    June 30,
2026		     December 31,
2025		  
Lease assets and liabilities            
Operating lease right-of-use assets, net   $ 5,810,975     $ 6,007,527  
Operating lease liabilities-current     -       641,564  
Operating lease liabilities-noncurrent     3,042,152       3,301,395  
Operating lease liabilities-total     3,042,152       3,942,959  

 

    Six Months Ended
June 30,		  
    2026     2025  
Lease expenses            
Operating lease expenses-Selling, general & admin portion   $ 15,073     $ 8,765  
Operating lease expenses-Manufacturing costs     99,422       71,102  
Total   $ 114,495     $ 79,867  
                 
Other Information                
Cash paid for amounts included in the measurement of lease liabilities                
Operating cash flows – operating leases   $ (757,286 )   $ (465,891 )
                 
Weighted average remaining lease term (in years)                
Operating leases     29.50       1.50  
                 
Average discount rate                
Operating leases     8.03 %     5.99 %

 

    Operating
Leases		  
Future minimum lease payments      
For the year ending December 31,      
2026 (6 months remaining)   $ -  
2027     -  
2028     3,665,510  
2029     -  
2030     -  
2031     -  
Thereafter     -  
Total     3,665,510  
Less: interest     623,358  
Present value of lease liabilities   $ 3,042,152  

 

During the year ended December 31, 2025, the Company modified its existing operating lease agreement for land located in San Rafael, Bulacan, Philippines. The modification effectively extended the lease period, resulting in a new non-cancellable term expiring on December 31, 2055.

 

In accordance with ASC 842, this extension was accounted for as a lease modification. Consequently, the Company remeasured the lease liability based on the extended future minimum lease payments and recognized a corresponding adjustment to the operating lease right-of-use (ROU) asset. Following this remeasurement, the total operating lease ROU asset and corresponding lease liability for this property were approximately $5.75 million. The modified lease agreement does not include additional options to extend the lease term.