5. Lease

 

On January 1, 2025, the Company assumed an office lease from Duraviva Pharma Inc. (“Duraviva”), a New York corporation under common control, through a lease assignment agreement. The lease term extends through August 31, 2026. The Company classified the lease as an operating lease. Upon adoption of ASC 842, the Company recognized right-of-use asset and corresponding lease liability for its operating lease.

 

During the fourth quarter of 2025, the Company entered into lease agreements for three motor vehicles with non-cancelable terms ranging from 36 to 51 months.

 

 

The following summarizes information about the Company’s lease as of December 31, 2025 and 2024.

 Schedule of Lease

   2025   2024 
   For the Years Ended
December 31,
 
   2025   2024 
         
Amount recognized in the income statements          
           
Operating lease expense  $88,040   $- 

 

 

   As of December 31, 2025   As of December 31, 2024 
         
Amount recognized in the balance sheets          
           
Right-of-use assets  $352,616   $- 
Operating lease liabilities   346,699    - 
           
Amount recognized in the income statements          
           
Operating lease expense  $88,040   $- 
           
Cash paid for amounts included in the measurement of lease liabilities          
           
Operating lease expense  $93,957   $- 
           
Lease commitment          
           
2026  $136,921   $- 
2027   89,964    - 
2028   86,766      
2029   61,078      
Total future minimum lease payments   374,729    - 
less imputed interest   (28,030)   - 
Present value of lease liabilities  $346,699   $- 
           
Supplement information          
           
Discount rate   5.47%   n.a. 
           
Remaining lease term   47 months    n.a. 

 

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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.