BioNexus Gene Lab Corp Leases Disclosure
NOTE 6 – 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, generally with option to renew the lease after that date. 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 December 31, 2025 and 2024 operating lease right-of-use assets as follows:
|
| As of |
| |||||
|
| December 31, |
|
| December 31, |
| ||
|
| 2025 |
|
| 2024 |
| ||
Balance as of December 31, 2024 |
| $ | 215,243 |
|
| $ | 141,544 |
|
Add: Addition of right of use assets (1) |
|
| - |
|
|
| 145,736 |
|
Less: amortization (2) |
|
| (56,434 | ) |
|
| (48,983 | ) |
Less: lease termination (3) |
|
| - |
|
|
| (25,093 | ) |
Foreign translation differences |
|
| 18,928 |
|
|
| 2,039 |
|
Balance as of December 31, 2025 |
| $ | 177,737 |
|
| $ | 215,243 |
|
As of December 31, 2025 and 2024 operating lease liabilities as follows:
|
| As of |
| |||||
|
| December 31, |
|
| December 31, |
| ||
|
| 2025 |
|
| 2024 |
| ||
Balance as of beginning of the year |
| $ | 210,557 |
|
| $ | 133,395 |
|
Add: addition of lease liabilities (1) |
|
| - |
|
|
| 145,736 |
|
Less: gross repayment |
|
| (65,817 | ) |
|
| (56,598 | ) |
Add: imputed interest (4) |
|
| 12,677 |
|
|
| 11,795 |
|
Less: lease termination (3) |
|
| - |
|
|
| (25,679 | ) |
Foreign translation differences |
|
| 18,629 |
|
|
| 1,908 |
|
Balance as of end of the year |
|
| 176,046 |
|
|
| 210,557 |
|
Less: lease liability current portion |
|
| (59,147 | ) |
|
| (50,816 | ) |
Lease liability non-current portion |
| $ | 116,899 |
|
| $ | 159,741 |
|
As of December 31, 2025 and 2024, the maturities of the operating lease liabilities are as follows:
|
| As of |
| |||||
|
| December 31, |
|
| December 31, |
| ||
|
| 2025 |
|
| 2024 |
| ||
Years ending December 31 and December 31: |
|
|
|
|
|
| ||
2025 |
|
| - |
|
|
| 62,939 |
|
2026 |
|
| 68,671 |
|
|
| 62,311 |
|
2027 |
|
| 61,058 |
|
|
| 55,403 |
|
2028 |
|
| 49,776 |
|
|
| 45,166 |
|
2029 |
|
| 14,159 |
|
|
| 12,848 |
|
Total undiscounted cash flows |
|
| 193,664 |
|
|
| 238,667 |
|
Less: Interest imputed on lease liabilities |
|
| (17,618 | ) |
|
| (28,110 | ) |
Present value of lease liabilities |
| $ | 176,046 |
|
| $ | 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 year ended December 31, 2025 and 2024 were $56,434 and $48,983, 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, with a loss on lease termination recorded for $1,384.
|
| As of |
| |||||
|
| December 31, |
|
| December 31, |
| ||
|
| 2025 |
|
| 2024 |
| ||
Supplemental Cash Flow Disclosures: |
|
|
|
|
|
| ||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
| ||
Lease payment – operating leases |
| $ | (65,817 | ) |
| $ | (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) |
|
| 3.42 |
|
|
| 4.42 |
|
Weighted average discount rate for operating lease |
|
| 6.65 | % |
|
| 6.65 | % |
(4) Lease expenses for the year ended December 31, 2025 and 2024 were $69,111 and $60,778 respectively.
Other information:
|
| As of |
| |||||
|
| December 31, |
|
| December 31, |
| ||
|
| 2025 |
|
| 2024 |
| ||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
| ||
Operating cash flow from operating lease |
| $ | (34,511 | ) |
| $ | (42,895 | ) |
Right of use assets obtained in exchange for operating lease liabilities |
|
| 177,737 |
|
|
| 215,243 |
|
Remaining lease term for operating lease (years) |
|
| 3.42 |
|
|
| 4.42 |
|
Weighted average discount rate for operating lease |
|
| 6.65 | % |
|
| 6.65 | % |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 14, 2026 | Showing above |
| 2022 | Mar 31, 2023 | |
| 2021 | Apr 6, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Mar 31, 2020 | |
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.