LEASES

3 Months Ended

Mar. 31, 2025

Leases

LEASES

(5) LEASES

The Company ​​previously had entered into agreements to lease certain office space as well as its former warehouses and distribution centers under operating leases, which have been expired​​. ​​Following the expiration, the Company’s newly established Hong Kong subsidiary in February 2025 executed new office lease agreements.​​The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less.

The components of lease liabilities were as follows:

	Three Months Ended March 31,
	2025		2024
Current operating lease liabilities	$	58,688	$	9,061
Long-term operating lease liabilities		15,093		-
Total lease liabilities	$	73,781	$	9,061

The weighted-average remaining lease term and discount rate were as follows:

	Three Months Ended March 31,
	2025			2024
Operating leases:
Weighted average remaining lease term (years)		0.06			0.2
Weighted average discount rate		4.65	%		5.0	%

Supplemental cash flow information and non-cash activity related to our operating leases are as follows:

	Three Months Ended March 31,
	2025		2024
Operating cash flow information:
Amounts included in measurement of lease liabilities	$	-	$	13,676
Non-cash activities:
ROU asset obtained in exchange for lease liability	$	619	$	-