Greenpro Capital Corp. Leases Disclosure

NOTE 9 - LEASES

 

As of December 31, 2025, the Company has an operating lease agreement for one office space in Hong Kong, with a cancellable term of one year commencing from March 15, 2025, to March 14, 2026, after a non-cancellable term of 2two years expired on March 14, 2025, and has a finance lease for a motor vehicle in Malaysia, with a term of 5five years. Other than these leases, the Company does not have any other leases over the term of one year. Any lease with an initial term of 12 months or less is not recorded on the balance sheets. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

 

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable, and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

 

The components of lease costs and supplemental cash flow information related to operating leases and finance leases during the past two years are as follows:

 SCHEDULE OF COMPONENTS OF LEASE AND SUPPLEMENTAL CASH FLOW INFORMATION

		2025				2024
		For the years ended December 31,
		2025				2024
Lease costs
Operating lease costs:
Rental expenses (1)		$	97,721			$	97,667
Other rental expenses (2)			15,630				16,541
Total operating lease costs			113,351				114,208
Finance lease costs:
Interest expenses		$	883			$	1,070
Total finance lease costs			883				1,070
Total lease costs		$	114,234			$	115,278
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Rental payment - operating leases		$	97,721			$	97,667
Interest repayment - finance leases			883				1,070
Principal repayment - finance leases			3,944				3,447
Total cash paid		$	102,548			$	102,184
Non-cash activity:
Balance payment of ROU asset by finance lease liabilities		$	11,275			$	14,001
Weighted average remaining lease term (in years):
Operating leases			0.20				0.20
Finance leases			2.42				3.42
Weighted average discount rate:
Operating leases			4.0	%			4.0	%
Finance leases			6.9	%			6.9	%

 

(1)	Rental expenses include amortization of $95,493 and $94,807 and interest expenses of $2,228 and $2,860 for the years ended December 31, 2025, and 2024, respectively.
(2)	Other rental expenses represent those rental expenses for leases with a lease term within one year, and government rent and rates related to the leases.

 

 

The supplemental balance sheet information related to leases during the past two years is as follows:

 SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

		2025				2024
		As of December 31,
		2025				2024
Assets
Long-term operating lease ROU assets, net (1)		$	19,890			$	19,929
Long-term finance lease ROU asset, net (2)			15,794				20,272
Total ROU assets		$	35,684			$	40,201
Liabilities
Current portion of operating lease liabilities		$	19,890			$	19,929
Current portion of finance lease liabilities			4,442				3,766
Total current lease liabilities			24,332				23,695
Long-term finance lease liabilities			6,833				10,235
Total long-term lease liabilities			6,833				10,235
Total lease liabilities		$	31,165			$	33,930

 

(1)	Operating lease ROU assets, are measured at a cost of $447,497 and $351,829 and less accumulated amortization of $427,607 and $331,900 as of December 31, 2025, and 2024, respectively.
(2)	Finance lease ROU asset, is measured at a cost of $28,898 and less accumulated amortization of $13,104 and $8,626 as of December 31, 2025, and 2024, respectively.

 

Maturities of the Company’s lease liabilities as of December 31, 2025, are as follows:

 SCHEDULE OF MATURITIES OF LEASE LIABILITIES

		Operating leases				Finance leases
Year ending December 31,
2026			20,001				5,077
2027			-				5,077
2028			-				2,112
Total future minimum lease payments			20,001				12,266
Less: Imputed interest/present value discount			(111	)			(991	)
Present value of lease liabilities		$	19,890			$	11,275
Lease obligations
Current lease obligations		$	19,890			$	4,442
Long-term lease obligations			-				6,833
Total lease obligations		$	19,890			$	11,275

 

For the year ended December 31, 2025, total lease costs were $114,234 including operating lease costs of $113,351 and finance lease costs of $883.

 

For the year ended December 31, 2024, total lease costs were $115,278 including operating lease costs of $114,208 and finance lease costs of $1,070.