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LEASES
 12 Months Ended
Dec. 31, 2024
Leases  
LEASES

NOTE 13. LEASES

 

Operating Leases

 

ASU 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease, initially measured at the present value of the lease payments. The Company’s leases consist of operating leases on buildings and office space.

 

In accordance with ASU 2016-02, right-of-use assets are amortized over the life of the underlying leases. Lease expense for the years ended December 31, 2024 and 2023 was $418,458 and $534,404, respectively. As of December 31, 2024 and 2023, the weighted average remaining lease term and weighted average discount rates for the operating leases were 4.95 years and 8.76% and 3.92 years and 6.08% respectively.

 

Future minimum lease payment under these operating leases consisted of the following:

 

Year ending December 31, 

Operating Lease 

Obligations 

 
2025  $324,199 
2026   280,322 
2027   250,125 
2028   216,990 
2029   108,928 
Thereafter   177,102 
Total undiscounted operating lease payments   1,357,666 
Less: Imputed interest   (266,316)
Present value of operating lease liabilities  $1,091,350