NOTE 9 — LEASE

 

The Company previously leased office space in Irvine, California under a lease agreement entered into on July 31, 2023 with a lease term of 24 months, commencing on September 1, 2023 and expiring on August 31, 2025. The initial monthly rental payment was $3,708 from September 1, 2023 to August 31, 2024, with an annual 3.85% increase to $3,850 beginning on September 1, 2024.

 

In August 2025, the Company entered into a sublease agreement for office space located at 17901 Von Karman Avenue in Irvine, California with a lease term of approximately 42 months, commencing on September 1, 2025 and expiring on February 28, 2029. The monthly base rent under the sublease is $11,084.80.

 

In July and August 2025, the Company entered into several operating lease arrangements related to technology infrastructure and digital assets used in its operations, including AI computing servers, database and content delivery network services, and the domain name “Linkhome.ai.” These leases generally have contractual terms ranging from 10 to 20 years. Certain of these leases required upfront payments at the commencement of the lease term. As a result, the Company recognized right-of-use assets associated with the prepaid lease payments, which are recognized as lease expense over the respective lease terms.

 

The following tables present the Company’s operating lease costs, lease components, remaining lease term and discount rate:

 

   Year Ended
December 31,
2025
   Year Ended
December 31,
2024
 
Operating lease costs  $108,570   $45,347 

 

   December 31,
2025
   December 31,
2024
 
Operating lease right-of-use assets  $1,265,993   $29,410 
Operating lease liabilities – current  $109,711   $29,980 
Operating lease liabilities – non-current   266,282    
 
Total operating lease liabilities  $375,993   $29,980 

 

   December 31,
2025
 
Remaining lease term (years)   3.16 
Discount rate   7.38%

 

The following table is a schedule, by years, of the minimum lease payments as of December 31, 2025:

 

Year Ended December 31,  Operating
Lease
Liabilities
 
2026  $133,018 
2027   133,018 
2028   133,018 
2029   22,168 
Total lease payments   421,222 
Less: imputed interest   (45,229)
Present value of lease liabilities  $375,993 

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 27, 2025

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.