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LEASE

9 Months Ended

Sep. 30, 2025

5. LEASE

The Company entered into an operating lease for office space which became effective in June 2020. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of September 30, 2025, the remaining lease term was 4.9 years and the discount rate used was 6%.

The Company entered into an operating lease for additional office space which became effective in September 2025. The lease term is 7.4 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of September 30, 2025, the remaining lease term was 7.3 years and the discount rate used was 8%.

Operating lease cost included in selling, general and administrative expenses for the three months ended September 30, 2025 and 2024 was $267,053 and $190,603, respectively. Operating lease cost included in selling, general and administrative expenses for the nine months ended September 30, 2025 and 2024 was $645,904 and $568,642, respectively.

The following is the lease maturity analysis of our operating leases as of September 30, 2025:


Year ending December 31,
2025 (excluding the nine months ended September 30, 2025)	$	160,151
2026		1,156,518
2027		1,277,013
2028		1,296,105
2029		1,315,770
Thereafter		2,479,095
Total lease payments		7,684,652
Less: Imputed interest		(1,605,427	)
Present value of future lease payments		6,079,225
Less: current portion of lease liability		(583,773	)
Long-term portion of lease liability	$	5,495,452