Company: AOAO
Filing Date: 2025-07-30
Form Type: S-1/A
Source: 0001641172-25-021532
Chunk: 98

Company: Alpha One Inc.
Filing Date: 2025-07-30
Form: S-1/A
Chunk 98
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 asset.

The Company classifies a lease as a financing lease at lease commencement when the lease meets any one of the criteria:

| a. | The                                                                                              
 lease transfers ownership of the underlying asset to the lessee by the end of the lease term.    |
| b. | The                                                                                              
 lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably 
 certain to exercise.                                                                             |
| c. | The                                                                                              
 lease term is for a major part of the remaining economic life of the underlying asset.           |
| d. | The                                                                                              
 present value of the sum of the lease payments and any residual value guaranteed by the lessee   
 that is not already reflected in the lease payments equals or exceeds substantially all of       
 the fair value of the underlying asset.                                                          |
| e. | The                                                                                              
 underlying asset is of such a specialized nature that it is expected to have no alternative      
 use to the Company at the end of the lease term.                                                 |

When none of the criteria are met, the Company classifies a lease as an operating lease.

| F-10 |

The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less are short-term lease and not recognized as right-of-use assets and operating lease liabilities on the consolidated balance sheet. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term.

The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received.

Operating lease liabilities are recognized based on the present value of the lease payments not yet paid, discounted using the average borrowing rate of the Company’s outstanding loans.

Lease term includes rent holidays and options to extend or terminate the lease when the Company is reasonably certain that the Company will exercise that option. The lease assets for operating leases consist of the amount of the measurement of the lease liabilities and any prepaid lease payments. Operating lease expense is recognized on a straight-line basis over the lease term by adding interest expense determined using the effective interest method to the amortization of the right-of-use assets. Interest expense is determined using the effective interest method. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company reviews the impairment of its