{"url_path":"/sec/fdct/10-k/2026/item-2","section_key":"item-2","section_title":"Item 2 **","topic":"sec","document":{"doc_type":"10-K/A","doc_date":"2026-06-08","source_url":"https://www.sec.gov/Archives/edgar/data/1722731/0001493152-26-027724-index.html","accession_number":"0001493152-26-027724","cik":"0001722731","ticker":"FDCT","issuer_name":"FDCTECH, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1722731/0001493152-26-027724-index.html","primary_entity_key":"0001722731","primary_entity_name":"FDCTECH, INC."},"word_count":1193,"has_tables":true,"body_markdown":"**ITEM\n2.**\n**OPERATING\nLEASES**\n\n \n\n**Current\nOperating Leases**\n\n \n\n**Irvine,\nCalifornia, USA (Company’s Headquarters)**\n\n \n\nEffective\nOctober 29, 2019, to the present, the Company leased office space at 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618. As per the\nCommitment Term of the lease (“Agreement”), this Agreement shall continue on a month-to-month basis (any term after the Commitment\nTerm, also known as “Renewal Term”). The Commitment Term and all subsequent Renewal Terms shall constitute the “Term.”\nThe Company may terminate this Agreement by delivering to the lessor Form (“Exit Form”) at least one (1) whole calendar month\nbefore the month in which the Company intends to terminate this Agreement (“Termination Effective Month”). The Company is\nentitled to use the office and conference space if needed. The new rent payment or membership fee for the Irvine Office is $95 per month,\ncompared to the previous rent payment or membership fee for the New York Office of $890 per month, which covers general and administrative\nexpenses. This agreement is classified as a service contract rather than a lease under ASC 842 - Leases, and payments are accounted for\nas operating expenses rather than recognizing a Right-of-Use (ROU) asset or lease liability.\n\n \n\n**Brisbane,\nAustralia (ADS Office)**\n\n \n\nEffective\nJanuary 1, 2024, to the present, the Company has leased office space at Level 38, 71 Eagle Street, Brisbane City, QLD 4000, Australia.\nThis lease will continue on a month-to-month basis. ADS may terminate this Agreement by delivering to the lessor at least one (1) whole\ncalendar month before the month in which ADS intends to terminate the lease. ADS is entitled to use the office and conference space if\nneeded. The new rent payment or membership fee for the ADS Office is approximately $125 per month and is included as a general and administrative\nexpense. This agreement is classified as a service contract rather than a lease under ASC 842 - Leases, and payments are accounted for\nas operating expenses rather than recognizing a Right-of-Use (ROU) asset or lease liability.\n\n \n\n16 \n\n \n\n** **\n\n**Limassol,\nCyprus Lease (Company’s Executive Rental)**\n\n \n\nFrom\nFebruary 2019 to July 2023, the Company leased office space in Limassol District, Cyprus, from an unrelated party for a year. The office’s\nmonthly rent payment is $1,750, which is included in the general and administrative expenses. From July 2023 to the present, the Company\nhas leased a larger office space in the Limassol District, Cyprus, from an unrelated party for a one-year term. The office’s monthly\nrent payment is approximately $3,500, which is included in the general and administrative expenses. From July 2023 to the present, the\nCompany has leased office space for its Chief Executive Officer. The down payment for the lease was approximately $6,300. The lease is\nfor one year and is renewable two months prior to the term’s end in June 2025. This agreement is classified as a residential rental\ncontract rather than a commercial lease and does not create a Right-of-Use (ROU) asset under ASC 842.\n\n \n\n**Limassol,\nCyprus Lease, Europe (ATECH Office)**\n\n \n\nEffective\nAugust 26, 2024, ATECH has entered into a Sublease Agreement for office premises located on the ground floor at 10A-10C Eleftheriou Venizelou\nStreet, Limassol, Cyprus. The sublease is between Aldeon Property Partners Ltd (the “Sublessor”) and Alchemytech Ltd (the\n“Sublessee”), with FDCTech, Inc. acting as the Guarantor. The leased premises are designated strictly for office use, and\nany other usage is explicitly prohibited under the terms of the agreement. The lease term is for twenty-four (24) months, commencing\non October 1, 2024, and expiring on September 30, 2026. The lease agreement includes an option to extend the tenancy for up to two additional\ntwo-year terms. The rent is subject to a 5% increase for each renewal period. Under the agreement, the Sublessee is obligated to pay\na total rent of €192,000 over the lease term, payable in monthly installments of €8,000 (or approximately $8,600) plus VAT.\nUnder ASC 842 - Leases, this agreement qualifies as a lease, and the Company will recognize a Right-of-Use (ROU) asset and corresponding\nlease liability on its financial statements.\n\n \n\n**St.\nJulian, Malta (AML Office)**\n\n \n\nEffective\nJuly 11, 2024, to the present, AML leased office space with Regus Malta at Portomaso Business Centre, Portomaso, St. Julian, PTM01, Malta.\nAs per the lease, this agreement shall continue on a month-to-month basis (any term after the term, also known as “Renewal Term”).\nThe term and all subsequent renewal terms shall constitute the “Term.” AML may terminate this agreement by delivering to\nRegus Malta at least one (1) whole calendar month before the month in which AML intends to terminate this lease. AML is entitled to use\nthe office and conference space if needed. The rent payment or membership fee for the AML Office is €1,659 per month. This agreement\nis classified as a service contract rather than a lease under ASC 842 - Leases, and payments are accounted for as operating expenses\nrather than recognizing a Right-of-Use (ROU) asset or lease liability.\n\n \n\n**Tel\nAviv, Israel (AML Sales Office)**\n\n \n\nEffective\nJuly 1, 2023, AML has entered into a service agreement with Mindspace Ltd. for the use of office space and related services at Menachem\nBegin 11, Ramat Gan, Israel. The agreement provides access to designated office space, common areas, and various business services, including\ninternet connectivity, printing, and access to conference rooms. The agreement operates on a monthly, automatically renewing basis with\na total monthly fee of $4,500 (including VAT). Additionally, an advance deposit of $6,300 was paid as security for the Company’s\nobligations under the agreement. Under the terms of the agreement, Mindspace retains full discretion over space allocation and may relocate\nthe Company to a different office within the premises, provided that it gives prior notice. AML does not have exclusive control over\na specific office unit, and Mindspace provides shared services across its facilities. The agreement does not create a lease under ASC\n842 – Leases and is accounted for as a service contract. As a result, payments under this agreement are classified as operating\nexpenses rather than recognizing a Right-of-Use (ROU) asset or lease liability.\n\n \n\n**London,\nUnited Kingdom (APL Office)**\n\n \n\nEffective\nDecember 20, 2024, APL entered into a lease agreement for office space located on the fifth floor at 142 Central Street, Clerkenwell,\nLondon, EC1V BAR. Agop Tanielian and Hourig Mercedes Tanielian hold the lease as landlords, and the Company, through its subsidiary Alchemy\nPrime Limited, is the tenant. The lease has a fixed term of five years, commencing in 2024 and expiring in 2029, with an annual rent\nof £112,500 (or $12,000 monthly), payable in quarterly installments. APL is also liable for service charges, insurance, rent, and\nmaintenance responsibilities as specified in the agreement. The lease includes an option to terminate (“Break Clause”) on\nor after 2026, provided that a four-month written notice is given prior. Additionally, the agreement requires APL to restore the premises\nupon termination, including the removal of any alterations or fixtures made during the lease term. Under ASC 842 - Leases, this agreement\nqualifies as a lease, and the Company will recognize a Right-of-Use (ROU) asset and corresponding lease liability on its financial statements.\n\n \n\nRental\nexpenses are included in General and Administrative costs.\n\n \n\n17"}