Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 187

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 187
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 Contract liabilities                                            166,582                   35,080  
  Payable for purchasing equipment                                 13,101                  233,635  
  Others                                                          330,294                  383,260  
  Total                                 $                       3,040,716      $         3,161,258  

F-22

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

10. LEASES

Operating lease right-of-use assets, net and operating
lease liabilities consisted of the following:

                                                                     As of December 31,                   
                                                                                   2024                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating lease right-of-use assets                                        10,393,154       11,372,614  
  Operating lease right-of-use assets -accumulated amortization             ( 4,971,918      ( 4,434,132  
  Operating lease right-of-use assets, net                                    5,421,236        6,938,482  
                                                                                      -                   
  Operating lease liabilities, current                                        2,060,022        2,172,368  
  Operating lease liabilities, non-current                                    3,911,466        5,255,281  
  Total operating lease liabilities                                           5,971,488        7,427,649  

A summary of lease cost recognized in the Group’s
consolidated statements of operations and comprehensive loss is as follows:

                                                                 For the Years Ended                                          
                                                                                                                              
                                                                                                                              
                                                                 December 31,                                                 
                                                                 2024                                    2023                 
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating leases cost excluding short-term rental expense      $                        2,437,633      $         2,529,180  
  Short-term lease cost                                                                     355,098                   98,935  
  Total                                                          $                        2,792,731      $         2,628,115  

The Group’s lease agreements do not have
a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification
and represents the rate of interest the Group would have to pay to borrow on a collateralized basis over a similar term and an amount
equal to the lease payments in a similar economic environment.

As of December