Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 185

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 185
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F-19

FEMCO STEEL TECHNOLOGY CO., LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except for share and per share data, or otherwise noted) 10.LEASES (cont.) A summary of lease cost recognized in the Group’s consolidated statements of operations and comprehensive income is as follows:

|                                                           |     | For the Years Ended 
 December 31,        |      2023 |     |   |      2022 |
|:----------------------------------------------------------|:----|:--------------------|----------:|:----|:--|----------:|
| Operating leases cost excluding short-term rental expense |     | $                   | 2,529,180 |     | $ | 1,364,128 |
| Short-term lease cost                                     |     |                     |    98,935 |     |   |   869,563 |
| Total                                                     |     | $                   | 2,628,115 |     | $ | 2,233,691 |

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 31, 2023, the weighted average remaining lease term was 7.77 years, and the weighted average discount rate was 2.98% for the Group’s operating leases. The following table summarizes the maturity of lease liabilities under operating leases as of December 31, 2023:

| For the year ending December 31, 
 2024                             |     | Operating 
 Leases    | 2,405,774 |
|:---------------------------------|:----|:----------|----------:|
| 2025                             |     |           | 1,466,363 |
| 2026                             |     |           | 1,205,966 |
| 2027                             |     |           |   514,931 |
| 2028 and thereafter              |     |           | 2,937,080 |
| Total lease payments             |     |           | 8,530,114 |
| Less: imputed interest           |     |           | 1,102,465 |
| Total                            |     |           | 7,427,649 |
| Less