Operating Lease

9 Months Ended

Sep. 30, 2025

Note 7 Operating Lease

On July 31, 2024, the Company entered into a 10-year extension of its lease through March 31, 2035, for office space of approximately 40,158 square feet at a single location.

As of September 30, 2025, the carrying value of the right-of-use asset, which is included in property and equipment on the consolidated balance sheets, was approximately $3.5 million. As of September 30, 2025, the carrying value of the lease liability was approximately $6.5 million.

Lease liability is measured at the present value of the remaining lease payments, discounted using the discount rate determined at the lease commencement date.

As of September 30, 2025, the weighted average discount rate applied to the Company’s lease liability was 6.5%, reflective of the Company’s incremental borrowing rate. The determination of the incremental borrowing rate involves judgment, including assumptions about the Company’s credit risk, economic conditions, and the lease-specific circumstances such as lease term and asset class. Changes in these assumptions could have a material impact on the measurement of the Company’s lease liability.

The following table summarizes the total lease and operating expenses for the three-and nine-month periods ended September 30, 2025 and 2024:


	September 30, 2025		September 30, 2024
Three Months Ended	$	261,653	$	246,089
Nine Months Ended	$	743,489	$	682,755

The following table provides a maturity analysis of the Company’s operating lease liability, based on undiscounted cash flows, as of September 30, 2025:


	As of September 30, 2025
2025	$	200,790
2026		821,231
2027		845,928
2028		871,429
2029		897,430
2030 and Thereafter		5,169,841
Total undiscounted operating lease payments		8,806,649
Less: Imputed interest		(2,310,924	)
Present value of operating lease liability	$	6,495,725