Leases

6 Months Ended

Jun. 30, 2025

Leases

Leases

Note 11 – Leases

Classification related to operating and finance leases on the unaudited consolidated balance sheet consists of the following:

	As of
	June 30, 2025		December 31, 2024
	(Unaudited)		(Audited)
Lease assets and liabilities
Operating lease assets, net	$	37,981	$	16,603
Finance lease assets, net		15,432		40,454
Operating lease liabilities – current	$	24,437	$	9,223
Operating lease liabilities – noncurrent		14,301		7,564
Operating lease liabilities – total	$	38,738	$	16,787
Finance lease liabilities – current	$	11,979	$	11,053
Finance lease liabilities – noncurrent		53,658		56,559
Finance lease liabilities – total	$	65,637	$	67,612

Components of lease cost, weighted average remaining lease terms and discount rates of operating and finance leases consist of the following:

	For the Six Months Ended			For the Years Ended
	June 30, 2025			December 31, 2024			December 31, 2023
	(Unaudited)			(Audited)			(Audited)
Lease expenses
Operating lease expenses – SG&A portion	$	13,225		$	21,874		$	23,089
Finance lease expenses
Depreciation expense of leased assets		26,351			50,426			17,625
Interest expense of finance lease	$	1,564		$	3,420		$	2,306
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows – operating leases	$	12,683		$	22,959		$	23,039
Operating cash flows – finance leases		1,564			3,420			2,306
Financing cash flows – finance leases	$	5,562		$	10,216		$	41,328
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	31,350		$	15,359		$	-
Weighted average remaining lease term (in years)
Operating leases		1.51			1.01			1.00
Finance leases		4.91			5.41			3.25
Average discount rate
Operating leases		8.72	%		7.74	%		5.77	%
Finance leases		4.67	%		4.67	%		4.63	%

Future minimum payments under operating and finance leases consist of the following:

	Operating Leases			Finance Leases
Future minimum lease payments
Period ended June 30, 2026	$	26,833		$	14,758
Period ended June 30, 2027		14,695			14,758
Period ended June 30, 2028		-			14,758
Period ended June 30, 2029		-			14,758
Period ended June 30, 2030		-			14,346
Total	$	41,528		$	73,378
Less: Interest		(2,790	)		(7,741	)
Present value of lease liabilities	$	38,738		$	65,637

TMD Energy Limited

Notes to Unaudited Consolidated Financial Statements

For the Six Months Ended June 30, 2025 and the Years Ended December 31, 2024 and 2023