Annual and transition report of foreign private issuers [Sections 13 or 15(d)]

RIGHT OF USE ASSET AND LEASE LIABILITY

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RIGHT OF USE ASSET AND LEASE LIABILITY
 12 Months Ended
Dec. 31, 2025
Right Of Use Asset And Lease Liability  
RIGHT OF USE ASSET AND LEASE LIABILITY

NOTE 13 — RIGHT OF USE ASSET AND LEASE LIABILITY

 

The Company has lease contracts for land, buildings and motor vehicles. The Company’s obligations under these leases are secured by the lessor’s title to the leased assets. The Company is restricted from assigning and subleasing the leased assets. There are several lease contracts that include extension options which are further discussed below.

 

  a) The carrying amounts of right-of-use assets are as follows:

 

    Leasehold land     Leasehold buildings     Total  
As at 1 January 2025   $ —     $ —     $ —  
Additions     2,232,254       185,370       2,417,624  
Depreciation     (50,167 )     (51,731 )     (101,898 )
As at 31 December 2025   $ 2,182,087     $ 133,639     $ 2,315,726  

 

  b) Amounts recognised in profit or loss

 

SCHEDULE OF RECOGNISED IN PROFIT OR LOSS

    2025     2024  
Depreciation of right of use assets   $ 101,898     $ —  
Interest expense on lease liabilities     79,939       —  
Total amount recognised in profit/loss   $ 181,837     $ —  

 

c) Total cash outflow

 

The Company had total cash outflows for leases of US$138,902 (2024: Nil).

 

Lease liabilities

 

The maturity analysis of lease liabilities is as follows:

 

    2025     2024  
    As of December 31,  
    2025     2024  
Within one year   $ 259,750     $ -  
Two to five years     1,237,967       -  
Thereafter     9,997,614       -  
Gross lease liabilities     11,495,331       -  
Less: Imputed interest     (9,194,995 )     -  
Lease liabilities   $ 2,300,336     $ -  
                 
Lease liabilities – Current   $ 234,169     $ -  
Lease liabilities - Non-Current     2,066,167       -  
Lease liabilities   $ 2,300,336     $ -  

 

The weighted average discount rate utilized to calculate the present value of the lease liabilities was 11.30%. The average remaining life of the leases is 68.14.