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Leases
 9 Months Ended
Sep. 30, 2025
Leases  
Leases

Note 8 –Leases

 

The Company has various operating lease agreements primarily related to real estate and office. The Company’s real estate leases represent a majority of the lease liability. Lease payments are mainly fixed. Any variable lease payments, including utilities, common area maintenance are expensed during the period incurred. Variable lease costs were immaterial for the quarter ended September 30, 2025 and 2024. A majority of the real estate leases include options to extend the lease. Management reviews all options to extend at the inception of the lease and account for these options when they are reasonably certain of being exercised.

 

Operating lease expense is recognized on a straight-line basis over the lease term and is included in operating expense on the Company’s condensed consolidated statement of operations and comprehensive loss. Operating lease cost was $207,526 and $273,631 during the period ended September 30, 2025 and 2024, respectively.

 

The following table sets forth the maturities of our operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the consolidated balance sheet at September 30, 2025

 

     
Undiscounted Future Minimum Lease Payments  Operating Lease
    
2025 (three months remaining)   80,512 
2026   52,703 
2027   2,976 
Total   136,191 
Amount representing imputed interest   (3,564)
Total operating lease liability   132,627 
Current portion of operating lease liability   120,942 
Operating lease liability, non-current  $11,685 

   

The table below presents lease-related terms and discount rates at September 30, 2025:

  

     
Remaining term on leases   1 to 18 months 
Incremental borrowing rate   5.0% To 9%