Agape ATP Corp Leases Disclosure
19. LEASE
Lease commitments
On July 11, 2024, the Company leased non-commercial vehicle as lessee under finance leases with 5 years lease terms. The Company recognized finance lease liabilities of approximately $72,772, using an effective interest rate of 4.42%, which was determined using the incremental borrowing rate.
| Components of leases | As of December 31, 2025 | As of December 31, 2024 | ||||||
| Operating lease cost | $ | 172,213 | $ | 155,828 | ||||
| Amortization of finance lease asset | 44,150 | 29,445 | ||||||
| Interest on finance lease liabilities | 8,718 | 7,267 | ||||||
| Weighted average remaining lease term (years) | ||||||||
| Operating lease | 0.75 | 1.49 | ||||||
| Finance lease | 3.34 | 4.34 | ||||||
| Weighted average discount rate | ||||||||
| Operating lease | 5.37 | % | 5.5 | % | ||||
| Finance lease | 6.81 | % | 6.7 | % | ||||
The five-year maturity of the Company’s operating and finance lease liabilities is as follow:
| Twelve Months Ending December 31, 2025 | Operating lease liabilities | Finance lease liabilities | ||||||
| 2026 | $ | 95,821 | $ | 33,038 | ||||
| 2027 | 8,943 | 33,038 | ||||||
| 2028 | 33,038 | |||||||
| 2029 | 47,017 | |||||||
| Total lease payments | 104,764 | 146,131 | ||||||
| Less: interest | (2,222 | ) | (18,887 | ) | ||||
| Present value of lease liabilities | $ | 102,542 | $ | 127,244 | ||||
The Company also leases one office and operation center, one apartment and one shophouse with an expiring term of twelve months or less, which were classified as operating leases. Since the lease terms for these leases were twelve months or less, a lessee is permitted to elect not to recognize lease assets and liabilities. The Company has elected not to recognize lease assets and liabilities on these leases. As of December 31, 2025, the Company’s commitment for minimum lease payment under these operating leases within the next twelve months were $65,987.
Short term lease cost for the years ended December 31, 2025 and 2024 were $107,222 and $65,608 respectively.
AGAPE ATP CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 13, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.