10. Leases

The Company leases buildings and vehicles. The leases typically run for a period of 2 to 10 years with an option to renew or terminate the lease after that date. The Company also leases water purifiers, copy machines and others with contract terms of one to three years. These leases are short-term and/or leases of low-value items. Information about leases for which the Company is a lessee is presented below.

Right-of-use assets related to leased are presented as property and equipment.

Details of right-of-use assets and lease liabilities recognized in the statements of financial position as of June 30, 2026 and December 31, 2025 are as follows:

Changes in right-of-use assets for the six-month periods ended June 30, 2026 and 2025 are as follows:

Changes in lease liabilities for the six-month period ended June 30, 2026 are as follows:

Amounts recognized in profit or loss for the six-month periods ended June 30, 2026 and 2025 are as follows:

Amounts recognized in statements of cash flows for the six-month periods ended June 30, 2026 and 2025 are as follows:

Some property leases contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses at the lease commencement date whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. Extension options primarily relate to “building leases” and do not have a material impact on the measurement of the Company’s right-of-use assets and lease liabilities as of June 30, 2026.

14. Leases

The Company leases buildings and vehicles. The leases typically run for a period of 2 to 10 years, with an option to renew or terminate the lease after that date. The Company also leases water purifiers, copy machines, and others with contract terms of one to three years. These leases are short-term and/or leases of low-value items. Information about leases for which the Company is a lessee is presented below.

Right-of-use assets related to leased properties are presented as property and equipment.

Details of right-of-use assets and lease liabilities recognized in the statements of financial position as of December 31, 2025 and 2024 are as follows:

Changes in right-of-use assets for the years ended December 31, 2025 and 2024 are as follows:

In applying the Company’s accounting policies for leases, management applies judgment in assessing the lease term and determining the appropriate discount rate. For the leases outstanding as of December 31, 2025, the incremental borrowing rates applied range from 8.392% to 10.997%, depending on the lease term, commencement date, and type of underlying asset. The lease terms applied to individual lease contracts range from 3 to 10 years. As of December 31, 2025, the weighted-average remaining lease term was approximately 4.36 years, calculated based on the carrying amounts of lease liabilities.

Changes in lease liabilities for the years ended December 31, 2025 and 2024 are as follows:

Undiscounted lease payments as of December 31, 2025 by remaining maturity through the end of the lease term, are as follows. The undiscounted lease payments are reconciled to the lease liabilities recognized in the statement of financial position as of December 31, 2025:

Amounts recognized in profit or loss for the years ended December 31, 2025 and 2024 are as follows:

Cash outflows for leases for the years ended December 31, 2025 and 2024 are as follows:

Some property leases contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses at the lease commencement date whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. Extension options primarily relate to “building leases” and do not have a material impact on the measurement of the Company’s right-of-use assets and lease liabilities as of December 31, 2025.