LEASES

6 Months Ended

Jun. 30, 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 expired. Following the expiration, the Company’s newly established Hong Kong subsidiary executed new office lease agreements in March 2025. ​​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 expenses were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease costs	$	15,705	$	9,061	$	20,981	$	22,512
Short-term lease costs		-		-				14,050
Total lease costs	$	15,705	$	9,061	$	20,981	$	36,562
Cash paid for amounts included in the measurement of lease liabilities	$	11,322	$	8,836	$	11,322	$	22,512

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

	Period Ended June 30,
	2025			2024
Operating leases:
Weighted average remaining lease term (years)		1.02			0.0
Weighted average discount rate		4.65	%		0.0	%

The Company leased office space from an affiliate entity owned by the Company’s former Chairman of the Board. The lease expired and was not renewed in the first quarter of 2024.