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Right-of-Use Assets and Liabilities

12 Months Ended

Dec. 31, 2025

Note 14 — Right-of-Use Assets and Liabilities

On September 23, 2025, the Company executed lease renewal agreements for both its current properties located in West Henrietta, New York extending the current lease terms to November 30, 2027. As a result, the Company recorded an additional Right-of-Use asset and Right-of-Use liability of $1,044,154 on the Consolidated Balance Sheets as of September 23, 2025. These amounts were non-cash in nature and therefore are excluded from the statement of cash flows.

Operating lease costs under our operating leases totaled $1,063,955, $725,913 and $828,007 for the years ended December 31, 2025, 2024, and 2023, respectively.

Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally also include real estate taxes and common area maintenance charges in the annual rental payments. Short-term leases are leases having a term of twelve (12) months or less. The Company recognizes short-term leases on an as-incurred basis and does not record a related lease asset or liability for such leases.

As none of our leases provide an implicit interest rate, we use our incremental borrowing rate to determine our discount rate at lease inception based upon the information available at commencement in determining the present value of lease payments. As of December 31, 2025, the weighted average discount rate was 7.1% and the weighted average remaining lease term was 1.9 years. As of December 31, 2024, the weighted average discount rate was 7.1% and the weighted average remaining lease term was 0.9 years.

Future lease payments under operating leases as of December 31, 2025 were as follows:


2026	$	567,184
2027		519,919
Total Future Lease Payments		1,087,103
Less: Imputed Interest		(84,078)
Total Lease Liability Balance	$	1,003,025