OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

6 Months Ended

Jun. 30, 2024

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

NOTE 5 – OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

The Company has operating lease arrangements for office space, lab, and motor vehicles in Malaysia with a term between two and five years. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.

The present value of the lease payments are discounted with rates ranging from 6.40% to 6.65% per annum. These rates are reference from base rate of Malayan Banking Berhad, the largest bank in Malaysia.

The lease payments of operating lease are classified within operating activities in the statement of cash flows.

Operating lease right of use assets as follows:

	As of
	June 30,			December 31,
	2024			2023
Balance as of beginning of the period/year	$	141,544		$	55,730
Add: Addition of lease liabilities (1)		124,778			113,279
Less: Amortization (2)		(20,700	)		(25,038	)
Foreign translation differences		(3,922	)		(2,427	)
Balance as of end of the period/year	$	241,700		$	141,544

Operating lease liabilities as follows:

	June 30,			December 31,
	2024			2023
Balance as of beginning of the period/year	$	133,395		$	56,775
Add: Addition of lease liabilities (1)		124,778			113,279
Less: gross repayment		(23,169	)		(39,798	)
Add: imputed interest (3)		4,595			5,613
Foreign translation differences		(3,692	)		(2,474	)
Balance as of end of the year		235,907			133,395
Less: lease liability current portion		(53,210	)		(34,632	)
Lease liability non-current portion	$	182,697		$	98,763

(1) During the six months period ended June 30, 2024, the Company had entered into a new operating lease of rented office for 5 years. An additional right-of-use assets at $124,778 and lease liabilities at $124,778 are recognised upon the commencement of lease term.

(2) The amortization of the right of use asset for the six months’ period ended June 30, 2024 and six months’ period ended June 30, 2023 were $20,700 and $7,891 respectively.

Other information:

	As of
	June 30,			December 31,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$	22,266			76,620
Right of use assets obtained in exchange for operating lease liabilities		241,700			141,544
Remaining lease term for operating lease (years)		4.92			4.50
		6.65	%
Weighted average discount rate for operating lease	$	6.65	%		6.53	%

3) Lease expenses for the six months’ period ended June 30, 2024 and six months’ period ended June 30, 2023 were $4,595 and $1,275, respectively.