OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

3 Months Ended

Mar. 31, 2025

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 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 March 31, 2025 and December 31, 2024, operating lease right-of-use assets as follows:

	As of
	March 31,			December 31,
	2025			2024
Balance as of beginning of the period/year	$	215,243		$	141,544
Add: Addition of right of use assets (1)		-			145,736
Less: amortization (2)		(13,379	)		(48,983	)
Less: lease termination (3)		-			(25,093	)
Foreign translation differences		2,059			2,039
Balance as of end of the period/year	$	203,923		$	215,243

As of March 31, 2025 and December 31, 2024, operating lease liabilities as follows:

	As of
	March 31,			December 31,
	2025			2024
Balance as of beginning of the period/year	$	210,557		$	133,395
Add: addition of lease liabilities (1)		-			145,736
Less: gross repayment		(15,827	)		(56,598	)
Add: imputed interest (4)		3,364			11,795
Less: lease termination (3)		-			(25,679	)
Foreign translation differences		2,019			1,908
Balance as of end of the period/year		200,113			210,557
Less: lease liability current portion		(52,173	)		(50,816	)
Lease liability non-current portion	$	147,940		$	159,741

As of March 31, 2025 and December 31, 2024 the maturities of the operating lease obligation are as follows:

	As of
	March 31,			December 31,
	2025			2024
Years ending March 31 and December 31:
2025		-			62,939
2026		63,557			62,311
2027		61,020			55,403
2028		55,947			45,166
2029		39,407			12,848
2030		5,190			-
Total undiscounted cash flows		225,121			238,667
Less: Interest imputed on lease liabilities		(25,008	)		(28,110	)
Present value of lease liabilities	$	200,113		$	210,557

(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 period ended March 31, 2025 and 2024 were $13,379 and $9,448, 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
	March 31,			December 31,
	2025			2024
Supplemental Cash Flow Disclosures:
Cash paid for amounts included in the measurement of lease liabilities:
Lease payment – operating leases	$	(15,827	)	$	(56,598	)
Operating lease liabilities obtained in exchange for operating lease assets		-			145,736
Other information:
Weighted average remaining lease term for operating lease (years)		4.17			4.42
Weighted average discount rate for operating lease		6.65	%		6.65	%

(4)  Lease expenses for the period ended March 31, 2025 and 2024 were $16,743 and $11,478 respectively.