NOTE 16 – LEASES

 

The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates.

 

The following is a summary of operating lease assets and liabilities:

 

   As of
December 31
 
Operating leases  2024   2023 
Assets        
ROU operating lease assets   2,623,880    2,657,554 
           
Liabilities          
Current portion of operating lease   409,518    396,784 
Non Current portion of operating lease   2,349,118    2,351,113 
Total lease liabilities   2,758,636    2,747,897 

 

   As of
December 31
 
Operating leases  2024   2023 
Weighted average remaining lease term (years)          
Ilabs Info Technology 3rd Floor   5.19    6.19 
Ilabs Info Technology 1st Floor   5.58    
-
 
Ilabs Info Technology Ground Floor   7.42    8.42 
Village Chhatarpur-1849-1852-Farm   0.58    1.58 
           
Weighted average discount rate          
Ilabs Info Technology 3rd Floor   12%   12%
Ilabs Info Technology 1st Floor   12%   
-
 
Ilabs Info Technology Ground Floor   12%   12%
Village Chhatarpur-1849-1852-Farm   10%   10%

 

Supplemental cash flow and other information related to leases are as follows:

 

   Year ended December 31 
   2024   2023 
Cash payments for amounts included in the measurement of lease liabilities:        
Operating cash outflows for operating leases   705,868    524,766 

Maturities of lease liabilities as of December 31, 2024 were as follows:

  

    Operating Leases  
Fiscal Year   Amount
(in $
)
 
2025     707,907  
2026     596,737  
2027     608,834  
2028     621,537  
2029     634,874  
2030 and thereafter     703,872  
Total Lease Payment     3,873,761  
Less: Imputed Interest     1,115,125  
Present value of lease liabilities     2,758,636  

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.