OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

12 Months Ended

Dec. 31, 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, generally with option to renew the lease after that date. 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 the 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.

As of December 31, 2024 and 2023 operating lease right-of-use assets as follows:
	As of
	December 31,			December 31,
	2024			2023
Balance as of December 31, 2023	$	141,544		$	55,730
Add: Addition of right-of-use assets (1)		145,736			113,279
Less: amortization (2)		(48,983	)		(25,038	)
Less: lease termination (3)		(25,093	)		-
Foreign translation differences		2,039			(2,427	)
Balance as of December 31, 2024	$	215,243		$	141,544

As of December 31, 2024 and 2023 operating lease liabilities as follows:

	As of
	December 31,			December 31,
	2024			2023
Balance as of beginning of the year	$	133,395		$	56,775
Add: addition of lease liabilities (1)		145,736			113,279
Less: gross repayment		(56,598	)		(39,798	)
Add: imputed interest (4)		11,795			5,613
Less: lease termination (3)		(25,679	)		-
Foreign translation differences		1,908			(2,474	)
Balance as of end of the year		210,557			133,395
Less: lease liabilities current portion		(50,816	)		(34,632	)
Lease liabilities non-current portion	$	159,741		$	98,763

As of December 31, 2024 and 2023, the maturities of the operating lease liabilities are as follows:

	As of
	December 31,			December 31,
	2024			2023
Years ending December 31:
2024		-			43,213
2025		62,939			36,634
2026		62,311			36,634
2027		55,403			24,568
2028		45,166			14,332
2029		12,848			-
Total undiscounted cash flows		238,667			155,381
Less: Interest imputed on lease liabilities		(28,110	)		(21,986	)
Present value of lease liabilities	$	210,557		$	133,395

(1) During the year ended December 31, 2024, the Company entered into a new operating lease of office space in Malaysia for 5 years. Additional right-of-use assets at $131,581 and lease liabilities at $131,581 were recognised upon the commencement of lease term. The Company also renewed the lease for the lab in Penang, Malaysia, for 2 years, with additional right-of-use assets of $14,155 and lease liabilities of $14,155 recognised upon the commencement of lease term.

(2) The amortization of the operating lease right-of-use asset for the year ended December 31, 2024 and 2023 were $48,983 and $25,170, respectively.

(3) The Company agreed to terminate its operating lease arrangement for office space in Malaysia, effective August 31, 2024. Accordingly, at the date of termination of the operating lease, the Company expensed a right-of-use-asset, net of accumulated depreciation, of $25,094 and recorded a write-off of lease liability of $25,679, offset with deposit forfeited by landlord at $1,969, with a loss on lease termination recorded for $1,384.

	As of
	December 31,			December 31,
	2024			2023
Supplemental Cash Flow Disclosures:
Cash paid for amounts included in the measurement of lease liabilities:
Lease payment – operating leases	$	(56,598	)	$	(39,798	)
Operating lease liabilities obtained in exchange for operating lease assets		145,736			113,279
Other information:
Weighted average remaining lease term for operating lease (years)		4.42			4.5
Weighted average discount rate for operating lease		6.65	%		6.53	%

(4)  Lease expenses for the year ended December 31, 2024 and 2023 were $60,778 and $30,783 respectively.