Smart Powerr Corp. Commitments Disclosure
15. LEASE
On January 1, 2024, Xi’an TCH entered into a lease for its office from January 1, 2024 through December 31, 2026. The monthly rent was RMB 36,536 ($5,600) with half-year payment in advance. This lease expired in December 31,2026.
The Company’s operating ROU assets and lease liabilities were as follows:
| Year Ended | Year Ended | |||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Right-of-use assets, net | $ | 115,068 | ||||||
| Current operating lease liabilities | $ | 58,529 | ||||||
| Non-current operating lease liabilities | 56,539 | |||||||
| Total lease liabilities | 115,068 | |||||||
The components of lease costs, lease term and discount rate with respect of the office lease with an initial term of more than 12 months are as follows:
| Year Ended | Year Ended | |||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Operating lease cost – amortization of ROU | $ | 60,931 | $ | 61,453 | ||||
| Operating lease cost – interest expense on lease liability | $ | 5,528 | $ | 765 | ||||
| Weighted Average Remaining Lease Term - Operating leases | 2 | - | ||||||
| Weighted Average Discount Rate - Operating leases | 3.48 | % | 5 | % | ||||
The following is a schedule, by years, of maturities of the office lease liabilities as of December 31, 2024:
| For the year ended December 31, 2025, | $ | 60,066 | ||
| For the year ended December 31, 2026 | $ | 60,066 | ||
| Total undiscounted cash flows | 120,132 | |||
| Less: imputed interest | (5,063 | ) | ||
| Present value of lease liabilities | 115,068 |
Employment Agreement
On May 6, 2024, the Company entered another employment agreement with Mr. Shi for 24 months with monthly salary of RMB 18,000 ($2,500). The Company will grant the CFO no less than 5,000 shares of the Company’s common stock annually; however, as of this report date, the Board of Directors and Compensation Committee have not approved the number of shares to be given to the CFO, nor any stock reward agreement has been signed.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 28, 2025 | Showing above |
| 2023 | Apr 11, 2024 | |
| 2022 | May 8, 2023 | |
| 2021 | Sep 13, 2022 | |
| 2020 | Apr 15, 2021 | |
| 2019 | May 14, 2020 | |
| 2018 | Apr 16, 2019 | |
| 2017 | Apr 13, 2018 | |
| 2016 | Mar 30, 2017 | |
| 2015 | Mar 29, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.