Smart Powerr Corp. Leases Disclosure
16. 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 RMB36,536 ($5,083) 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:
| December 31, 2025 | December 31, 2024 | |||||||
| Right-of-use asset, net | $ | 61,092 | $ | 115,068 | ||||
| Current lease liability | $ | 61,092 | $ | 58,529 | ||||
| Non-current lease liability | 56,539 | |||||||
| Total lease liability | 61,092 | 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 December 31, 2025 | Year Ended December 31, 2024 | |||||||
| Operating lease cost – amortization of ROU | $ | 62,696 | $ | 60,066 | ||||
| Operating lease cost – interest expense on lease liability | $ | 1604 | $ | 5,063 | ||||
| Weighted Average Remaining Lease Term - Operating leases | 2 | 2 | ||||||
| Weighted Average Discount Rate - Operating leases | 3.48 | % | 3.48 | % | ||||
The following is a schedule, by years, of maturities of the office lease liabilities as of December 31, 2025:
| For the year ended December 31, 2026 | $ | 62,696 | ||
| Total undiscounted cash flows | 62,696 | |||
| Less: imputed interest | (1,604 | ) | ||
| Present value of lease liabilities | 61,092 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 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 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.