Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 130

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 130
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 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.
Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over
the lease term. For leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information
available at commencement date in determining the present value of lease payments. We use the implicit rate when readily
determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Significant judgment may be required when determining
whether a contract contains a lease, the length of the lease term, the allocation of the consideration in a contract between lease and
non-lease components, and the determination of the discount rate included in our office lease. We review the underlying objective of each
contract, the terms of the contract, and consider our current and future business conditions when making these judgments.

Any lease with a term of 12 months or less
is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU assets and lease liabilities on the
consolidated balance sheets. Consistent with all other operating leases, short-term lease expense is recorded on a straight-line basis
over the lease term.

The Financial Accounting Standards Board (“ FASB”)
issued a Q& A in March 2020 that focused on the application of lease guidance in ASC 842 for lease concessions related to
the effects of COVID-19. The FASB staff has said that entities can elect to not evaluate whether concessions granted by lessors related
to COVID-19 are lease modifications. Entities that make this election can then apply the lease modification guidance in ASC 842 or
account for the concession as if it were contemplated as part of the existing contract. The Company has elected to not treat the concessions
as lease modifications and will instead account for the lease concessions as if they were contemplated as part of the existing leases.
The Company has recorded negative variable lease expense and adjusted lease liabilities at the point in which the rent concession has
become accruable.

The Company evaluates the impairment of its right-of-use
assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived
assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment
of possible impairment is based on its ability to