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Leases

6 Months Ended

Jun. 30, 2025

Note 12 – Leases

We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets. As of June 30, 2025 and December 31, 2024, total operating and financed right-of-use assets were $791,910 and $5,972, and $913,439 and $18,209, respectively.

For the six months ended June 30, 2025 and 2024, we recorded $12,237 and $36,115, respectively, in amortization expense related to finance leases.

For the six months ended June 30, 2025 and 2024, we recorded $166,915 and $167,080, respectively, in rent expense related to operating leases.

In May 2023, we entered into an agreement to lease 4,128 square feet of office space in San Jose, CA commencing on September 1, 2023. The lease has a term of sixty-five months with an abatement period of five months and will cost approximately $208,000 during its first year. Thereafter, the lease payments increase by 3% annually.

In January 2024, we amended and renewed our lease at our corporate headquarters in Little Rock, Arkansas. The lease was extended for thirty-six months commencing on February 1, 2024 and expiring on January 31, 2027 and will cost approximately $127,000 during its first year. Thereafter, the lease payments increase by 2% annually.

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments.

Information related to our operating lease liabilities are as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
Cash paid for operating lease liabilities	$	77,258	$	171,175
Weighted-average remaining lease term	3.2 years

Minimum future lease payments ended June 30, 2025
2025 (remainder of year)		174,972
2026		354,565
2027		237,867
2028		233,727
2029		19,525
		1,020,656
Less imputed interest		(148,966	)
Total lease liabilities	$	871,690

Weighted-average remaining lease term		2.4 years
Weighted-average discount rate			10.5	%

Information related to our financed lease liabilities are as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
Cash paid for finance lease liabilities	$	6,240	$	12,480
Weighted-average remaining lease term	1.2 years

Minimum future lease payments ended June 30, 2025
2025 (remainder of the year)		6,011
		6,011
Less imputed interest		(39	)
Total lease liabilities	$	5,972

Weighted-average remaining lease term		.3 years
Weighted-average discount rate			6.25	%