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LEASES

12 Months Ended

Dec. 31, 2025

NOTE 17 – LEASES

The components of lease cost for operating leases for the year ended December 31, 2025 and 2024 is as follows:


	2025		2024
Lease Cost
Operating lease cost	$	471,230	$	468,996
Short-term lease cost		111,473		169,051
Total lease cost	$	582,703	$	638,047

Supplemental cash flow information related to leases for the year ended December 31, 2025 and 2024, is as follows:


	2025		2024
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	466,036	$	399,609
Amortization of right-of-use assets	$	417,330	$	396,979

The following table summarizes the lease-related assets and liabilities recorded on the balance sheet at December 31, 2025 and December 31, 2024:


	2025		2024
Lease Position
Operating Leases:
Operating lease right-of-use assets	$	778,235	$	739,234
Right-of-use liabilities operating leases short-term		322,103		443,950
Right-of-use liabilities operating leases long-term		471,683		331,222
Total operating lease liabilities	$	793,786	$	775,172

The Company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. The Company recognized an initial right-of-use asset and lease liability of $563,660 for leases entered into during the year ended December 31, 2025.


Lease Term and Discount Rate	December 31, 2025
Weighted-average remaining lease term (years):
Operating leases		4.1
Weighted-average discount rate:
Operating leases		7.51%

The following table provides the maturities of lease liabilities at December 31, 2025:


	Operating
	Leases
2026		369,599
2027		110,691
2028		110,691
2029		121,232
2030		131,772
2031		98,829
Total future undiscounted lease payments		942,814
Less: Interest		(149,028	)
Present value of lease liabilities	$	793,786

As discussed in Note 12, in August 2025 the Company entered into an assignment and assumption of a lease agreement with EAM whereby the Company agreed to assume half of the lease obligation of the New York City office lease of EAM. The Company recognized a right-of-use asset and liability of $563,660 for this lease, which includes the extension period discussed in Note 12.

In September 2025, the Company abandoned a leased facility in Round Rock, Texas. Upon abandonment of the facility the Company wrote off the remaining right of use asset of $107,329. On December 30, 2025, the Company and the landlord of this facility entered into a termination agreement and the Company is no longer obligated to make any lease payment on this facility and wrote off the remaining right of use liability of $79,010. As part of the termination agreement the Company agreed to forfeit $44,225 of its security deposit to the landlord and the remaining $55,390 of the security deposit will be returned to the Company in 2026. For the year ended December 31, 2025, the Company recognized a net loss of $72,544 associated with this terminated lease.