LEASES

12 Months Ended

Dec. 31, 2024

Leases

LEASES

7.       LEASES

The Company has entered into commercial operating leases with various third parties for the use of leasehold land in Hong Kong. These leases have original terms ranging from 6 to 12 years. These operating leases are included in “Right-of-use Assets” on the consolidated balance sheets and represent the Company’s right to use the underlying assets during the lease term. The Company’s obligation to make lease payments are included in “Lease liabilities” on the consolidated balance sheets.

Supplemental balance sheet information related to operating leases was as follows:

	As of
	December 31, 2024		December 31, 2023
Operating lease:
Right-of-use asset, net	$	1,244,794	$	1,357,270
Lease liabilities:
Current lease liabilities	$	97,857	$	88,816
Non-current lease liabilities		1,254,618		1,345,094
Total lease liabilities	$	1,352,475	$	1,433,910

Operating lease expense for the years ended December 31, 2024 and 2023 was $119,356 and $58,186, respectively.

Other supplemental information about the Company’s operating lease as of:

	As of
	December 31, 2024		December 31, 2023
Weighted average discount rate		5.75%		5.75%
Weighted average remaining lease term (years)		10.88		11.87

Operating lease commitments:

The following table summarizes the future minimum lease payments due under the Company’s operating leases in the next five years, as of December 31, 2024:

Year ending December 31,
2025	$	173,073
2026		173,073
2027		173,073
2028		173,073
2029		165,346
Thereafter		965,807
Total minimum finance lease liabilities payment		1,823,445
Less: imputed interest		(470,970	)
Future minimum lease liabilities	$	1,352,475