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

Note 18. Leases

 

The Group has historically entered into a number of lease arrangements under which it is the lessee. As of June 30, 2026, the Group’s operating leases relate to premises and office equipment. The Group does not sublease. All of its operating leases include multiple optional renewal periods which are not reasonably certain to be exercised.

 

As of June 30, 2026, the Group holds five finance leases relating to IT equipment. During the six months ended June 30, 2026, the Group completed one sale and leaseback transaction relating to IT equipment. The transaction met the criteria for a sale under ASC 606, and, accordingly, the Group derecognized the assets sold and recognized a right-of-use asset and lease liability in accordance with ASC 842. The leaseback arrangements are classified as finance leases.

 

During the six months ended June 30, 2026, and 2025, the Group recognized rent expenses associated with its leases as follows:

 

    Unaudited 6 months ended
June 30,		  
USD’000   2026     2025  
Finance lease cost            
Amortization of right-of-use assets     37       -  
Interest on lease liabilities     2       -  
                 
Operating lease cost:                
Fixed rent expense     590       323  
Variable lease cost     70       -  
Short-term lease cost     -       -  
Net lease cost     699       323  
Lease cost - Cost of sales             -  
Lease cost - General & administrative expenses     699       323  
Net lease cost     699       323  

 

During the six months ended June 30, 2026, and 2025, the Group had the following cash and non-cash activities associated with its leases:

 

    As of
June 30,		     As of
June 30,		  
USD’000   2026 (unaudited)     2025 (unaudited)  
Cash paid for amounts included in the measurement of lease liabilities:            
Operating cash flows from operating leases     590       337  
Financing cash flows from finance leases     39       -  
Non-cash investing and financing activities:                
Net lease cost     699       323  
Additions to ROU assets obtained from:                
New operating lease liabilities             70  
New finance lease liabilities     39       -  

 

The following table provides the details of right-of-use assets and lease liabilities as of June 30, 2026 and December 31, 2025.

 

USD’000  

As of
June 30,

2026 (unaudited)

    

As of
December 31,

2025

  
Right-of-use assets:            
Operating leases     5,975       6,366  
Finance leases     87       126  
Total right-of-use assets     6,062       6,492  
Lease liabilities:                
Operating leases     5,910       6,468  
Finance leases     90       129  
Total lease liabilities     6,000       6,597  

 

 

As of June 30, 2026, future minimum annual lease payments were as follows:

 

    USD’000     USD’000     USD’000  
Year   Operating     Finance     Total  
2026     572       28       600  
2027     877       52       929  
2028     858       36       894  
2029     857       9       866  
2030 and beyond     3,586       10       3,596  
Total future minimum operating and finance lease payments     6,750       135       6,885  
Less effects of discounting     (840 )     (45 )     (885 )
Lease liabilities recognized     5,910       90       6,000  

 

As of June 30, 2026, the weighted-average remaining lease term was 7.52 years for operating leases and 2.90 years for finance leases.

 

As leases do not provide an implicit rate, the Group calculated an estimate rate based upon the estimated incremental borrowing rate of the Group. The weighted average discount rate associated with operating lease as of June 30, 2026 was 3.79%. The weighted average discount rate associated with finance lease as of June 30, 2026 was 2.92%.