EUDA Health Holdings Ltd Leases Disclosure

Note 19 – Leases

 

As of December 31, 2022 and 2021, the Company has leased three offices, and one office, respectively, which were classified as operating leases. In addition, the Company had two office equipment leases which were classified as finance leases.

 

The Company occupies various offices under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.

 

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period.

 

The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 5.25%, which is determined using an incremental borrowing rate with similar term in Singapore.

 

As of December 31, 2022, the weighted average remaining lease terms of the Company’s operating lease and finance leases are 0.69 years and 2.01 years, respectively.

 

Operating and finance lease expenses consist of the following:

 Schedule of operating and finance lease expenses

				For the Year Ended
		Classification		December 31, 2022				December 31, 2021
Operating lease cost
Lease expenses		General and administrative		$	114,390			$	62,810
Lease expenses – short-term		General and administrative			113,055				143,589
Finance lease cost
Amortization of leased asset		General and administrative			7,948				8,153
Interest on lease liabilities		Other expense -Interest expenses			1,276				1,639
Total lease expenses				$	236,669			$	216,191

 

Weighted-average remaining term and discount rate related to leases were as follows:

 Schedule of weighted average remaining term and discount rate

		As of				As of
		December 31, 2022				December 31, 2021
Weighted-average remaining term
Operating lease			0.69 year				1.25 years
Finance leases			2.01 years				3.00 years
Weighted-average discount rate
Operating lease			5.25	%			5.25	%
Finance leases			5.25	%			5.25	%

 

 

The following table sets forth the Company’s minimum lease payments in future periods as of December 31, 2022:

 Schedule of future minimum lease payments

		Operating lease				Finance lease
		payments				payments				Total
Twelve months ending December 31, 2023		$	81,522			$	8,151			$	89,673
Twelve months ending December 31, 2024			-				15,614				15,614
Total lease payments			81,522				23,765				105,287
Less: discount			(1,563	)			(1,564	)			(3,127	)
Present value of lease liabilities		$	79,959			$	22,201			$	102,160

 

As of December 31, 2022, the Company minimum short term lease payments to be due within one year amounted to $25,075.