Operating Lease

12 Months Ended

Dec. 31, 2025

Operating Lease [Abstract]

OPERATING LEASE

5. OPERATING LEASE

As of December 31, 2025, TP Holdings had one 24-month office spaces lease agreement in Hong Kong with Thunder Power (Hong Kong) Limited (“TP HK”), a related party of the Company (Note 9). The lease agreement is non-cancellable, expiring in March 2027. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term.

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of the incremental borrowing rate. 

For operating leases that include rent holidays and rent escalation clauses, the Company recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. The Company records the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the consolidated statements of operations and comprehensive loss.

The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

For short-term leases, the Company records operating lease expense in its consolidated statements of operations and comprehensive loss on a straight-line basis over the lease term and record variable lease payments as incurred.

The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets.

	As of December 31,
	2025		2024
Right of use assets	$	17,865	$	4,614
Operating lease liabilities, current	$	14,877	$	3,455
Operating lease liabilities, non-current		1,703		—
Total operating lease liabilities	$	16,580	$	3,455

Other information about the Company’s leases is as follows:

	For the Years Ended December 31,
	2025			2024
Weighted average remaining lease term (years)		1.19			0.21
Weighted average discount rate		5.5	%		5.5	%
Amortization of right of use assets	$	17,137		$	26,995

For the years ended December 31, 2025 and 2024, operating lease expenses were $35,472 and $27,681, respectively, among which $18,335 and $nil were incurred for short-term lease expenses.

The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2025:

	December 31, 2025
For the year ending December 31, 2026	$	15,418
For the year ending December 31, 2027		1,713
Total lease payments		17,131
Less: Imputed interest		(551	)
Present value of lease liabilities	$	16,580