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Leases | 9 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2025 | Dec. 31, 2024
Leases [Abstract] |  |
Leases | 14. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets (“ROU”), operating lease liabilities, and operating lease liabilities, non-current. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. None of the leases entered into have an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any prepaid lease payments made and initial direct costs incurred and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease, which is recognized when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company has operating leases for real estate. The Company has certain intercompany leases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below. The components of lease expense included in the Company’s unaudited condensed statements of operations were as follows:
|  | Expense |  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | Classification |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Operating lease expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of ROU asset |  | General and administrative |  | $ | 53,417 |  |  | $ | 50,978 |  |  | $ | 172,405 |  |  | $ | 154,525 |
Accretion of Operating lease liability |  | General and administrative |  |  | 13,574 |  |  |  | 11,460 |  |  |  | 39,061 |  |  |  | 36,453 |
Total operating lease expense |  |  |  | $ | 66,991 |  |  | $ | 62,438 |  |  | $ | 211,466 |  |  | $ | 190,978 |
Other lease expense |  | General and administrative |  |  | 7,423 |  |  |  | 20,887 |  |  |  | 40,279 |  |  |  | 27,689 |
Total |  |  |  | $ | 74,414 |  |  | $ | 83,325 |  |  | $ | 251,745 |  |  | $ | 218,667 |
Other information related to leases is as follows:
|  | As of September 30, |  |  | As of December 31, |
|  | 2025 |  |  | 2024 |
Remaining lease term: |  |  |  |  |  |
Operating leases (in years) |  |  | 8.14 |  |  |  | 8.77 |
Discount rate: |  |  |  |  |  |  |  |
Operating leases |  |  | 7.24 | % |  |  | 7.25 | %
Amounts relating to leases were presented on the unaudited condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 in the following line items:
|  |  |  | As of September 30, |  |  | As of December 31, |
|  | Balance Sheet Classification |  | 2025 |  |  | 2024 |
Assets: |  |  |  |  |  |  |  |
Operating lease assets |  | Right-of-use assets |  | $ | 1,695,171 |  |  | $ | 1,879,729 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  |  | 170,774 |  |  |  | 183,981 |
Operating lease liabilities |  | Operating lease liabilities, non-current |  |  | 1,813,828 |  |  |  | 1,943,487 |
Total lease liabilities |  |  |  | $ | 1,984,602 |  |  | $ | 2,127,468 |
The future minimum lease payments required under leases as of September 30, 2025, were as follows:
Fiscal Year |  | Operating Leases |
Remainder of 2025 |  | $ | 77,319 |
2026 |  |  | 312,299 |
2027 |  |  | 316,369 |
2028 |  |  | 323,311 |
2029 |  |  | 336,045 |
Thereafter |  |  | 1,332,102 |
Undiscounted cash flows |  |  | 2,697,445 |
Less: imputed interest |  |  | (712,843 | )
Lease liability |  | $ | 1,984,602 |
14. | Leases
Accounting for Leases as Lessee The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets (“ROU”), operating lease liabilities, and operating lease liabilities, non-current. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. None of the leases entered into have an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any prepaid lease payments made and initial direct costs incurred and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease, which is recognized when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company has operating leases for real estate. The Company has certain intercompany leases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below. The components of lease expense included on the Company’s consolidated statements of operations were as follows:
|  | Expense Classification |  | For the Year Ended December 31, |
Operating lease expense: |  |  |  | 2024 |  |  | 2023 |
Amortization of ROU asset |  | General and administrative |  | $ | 215,231 |  |  | $ | 132,138 |
Accretion of Operating lease liability |  | General and administrative |  |  | 45,613 |  |  |  | 25,667 |
Total operating lease expense |  |  |  | $ | 260,844 |  |  | $ | 157,805 |
Other lease expense |  | General and administrative |  |  | 61,408 |  |  |  | 28,012 |
Total |  |  |  | $ | 322,252 |  |  | $ | 185,817 |
Other information related to leases is as follows:
|  | As of December 31, |
|  | 2024 |  |  | 2023 |
Remaining lease term: |  |  |  |  |  |
Operating leases (in years) |  |  | 8.77 |  |  |  | 9.29 |
Discount rate: |  |  |  |  |  |  |  |
Operating leases |  |  | 7.25 | % |  |  | 7.03 | %
Amounts relating to leases were presented on the consolidated balance sheets as of December 31, 2024 and 2023 in the following line items:
|  | Balance Sheet Classification |  | Year Ended December 31, |
Assets: |  |  |  | 2024 |  |  | 2023 |
Operating lease assets |  | Right-of-use assets |  | $ | 1,879,729 |  |  | $ | 1,616,198 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  |  | 183,981 |  |  |  | 141,691 |
Operating lease liabilities |  | Operating lease liabilities, non-current |  |  | 1,943,487 |  |  |  | 1,514,044 |
Total lease liabilities |  |  |  | $ | 2,127,468 |  |  | $ | 1,655,735 |
The future minimum lease payments required under leases as of December 31, 2024, were as follows:
Fiscal Year |  | Operating Leases |
2025 |  | $ | 333,200 |
2026 |  |  | 312,299 |
2027 |  |  | 316,369 |
2028 |  |  | 323,311 |
2029 |  |  | 336,045 |
Thereafter |  |  | 1,332,102 |
Undiscounted cash flows |  |  | 2,953,326 |
Less: imputed interest |  |  | (825,858 | )
Lease liability |  | $ | 2,127,468 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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