NOTE 8 - LEASE OBLIGATION

9 Months Ended

Sep. 30, 2025

Notes

NOTE 8 - LEASE OBLIGATION

NOTE 8 – LEASE OBLIGATION

42 Telecom Ltd maintains an office lease for premises located on the third and fourth floors of Hyundai Block, Valley Road, Msida, Malta. The lease commenced upon handover on July 24, 2023 and has a contractual term of five years, of which the first two years are non-cancellable and the remaining three years may be terminated by the Company with two months’ notice. Annual base rent is €60,000 plus VAT, payable quarterly in advance.

Lease costs are included on the unaudited condensed consolidated statements of operations as selling, general and administrative expenses.

The following is the summary of operating lease assets and liabilities:

		September 30,		December 31,
		2025		2024
Operating Leases
Right-of-use assets	$	183,097	$	-
Operating lease liability, current portion		64,309		-
Operating lease liability, net of current portion		118,788		-
Total lease liabilities	$	183,097	$	-

Weighted Average Remaining Lease Term (in years)	2.75
Weighted Average Discount Rate	4%

The operating lease costs totaled $11,383 for the nine months ended September 30, 2025.

The following is the summary of future minimum payments as of:

December 31,
2025 (three months remaining)	$	35,176
2026		70,352
2027		70,352
2028		35,176
Total lease payments		211,057
Less : imputed interest		(27,960)
Total	$	183,097