Currenc Group Inc. Leases Disclosure
10 Leases
The Company entered into operating leases for computer peripherals and office properties in Malaysia and Indonesia. The leases in Malaysia included an option to renew for a one year term. None of the renewal options have been included in the measurement of the leases.
The Company also entered into finance lease for computer peripherals.
CURRENC GROUP INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
| 10 | Leases (Continued) |
Right-of-use assets and lease liabilities, as of December 31, 2024 and 2023, are as follows:
| Financial Statement | December 31, | |||||||||
| Line Items | 2024 | 2023 | ||||||||
| US$ | US$ | |||||||||
| Right-of-use assets: | ||||||||||
| Operating lease | Right-of-use assets | 349,240 | 154,234 | |||||||
| Total right-of-use assets | 349,240 | 154,234 | ||||||||
| Lease liabilities: | ||||||||||
| Current liabilities | ||||||||||
| Operating lease | Current portion of lease liabilities | 171,909 | 152,325 | |||||||
| 171,909 | 152,325 | |||||||||
| Non-current liabilities | ||||||||||
| Operating lease | Other payables | 156,647 | ||||||||
| 156,647 | ||||||||||
The components of lease costs are as follows:
| Years ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| US$ | US$ | |||||||
| Operating lease costs | 644,730 | 1,123,046 | ||||||
| Short-term lease costs | 82,596 | 141,889 | ||||||
| Finance lease costs: | ||||||||
| Depreciation | ||||||||
| Interest on finance lease liabilities | ||||||||
| Total lease costs | 727,326 | 1,264,935 | ||||||
Other information related to leases is as follows:
| December 31, | ||||
| 2024 | ||||
| US$ | ||||
| Weighted Average Remaining Lease Term | ||||
| Operating lease | 16.5 | |||
| Weighted Average Discount Rate | ||||
| Operating lease | 8.6 | % | ||
Cash flows related to leases are as follows:
| Years ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| US$ | US$ | |||||||
| Cash flows from operating activities: | ||||||||
| Payments for operating lease liabilities | 213,708 | 199,447 | ||||||
| Cash flows from financing activities: | ||||||||
| Principal payments on finance lease obligation | ||||||||
| Supplemental Cash Flow Data: | ||||||||
| Right-of-use assets obtained in exchange for new operating lease obligations | 388,020 | 7,350 | ||||||
Future minimum lease payments under non-cancellable operating leases as of December 31, 2024 are as follows:
| Operating lease | ||||
| US$ | ||||
| For the year ending December 31, | ||||
| 2025 | 194,984 | |||
| 2026 | 162,487 | |||
| 357,471 | ||||
| Less: imputed interest | (28,915 | ) | ||
| Total lease liabilities | 328,556 | |||
CURRENC GROUP INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.