AVAX ONE TECHNOLOGY LTD. Leases Disclosure
21. LEASES
On November 1, 2023, the Company terminated its operating lease for office space. This resulted in a loss of $30,322 which is included in other loss. On the same date, the Company entered into a new short-term lease and has elected not to apply the recognition requirements under ASC 842 “Leases”. The Company has no finance leases.
The components of lease expenses were as follows:
| December
31, 2024 | December
31, 2023 | |||||||
| Operating lease cost | $ | $ | 242,632 | |||||
| Short-term lease cost | 60,224 | 47,385 | ||||||
| Total lease expenses | $ | 60,224 | $ | 290,017 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 7, 2025 | Showing above |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 14, 2023 | |
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.