| LEASES |
9. LEASES
The Company primarily enters into lease arrangements
for office, laboratory space, and copiers. A summary of supplemental lease information is as follows:
| | | December 31, | | | | | 2025 | | | 2024 | | | Weighted average remaining lease term - operating leases (in years) | | | 1.2 | | | | 2.1 | | | Weighted average remaining lease term - finance leases (in years) | | | 2.1 | | | | 3.1 | | | Weighted average discount rate – operating leases | | | 7.0 | % | | | 7.0 | % | | Weighted average discount rate – finance leases | | | 7.0 | % | | | 7.0 | % | | Operating cash flows from operating leases | | $ | 113,259 | | | $ | 177,081 | | | Operating cash flows from finance leases | | $ | 780 | | | $ | 1,053 | |
A summary of the Company’s lease assets and liabilities are as
follows:
| | | December 31, | | | | | 2025 | | | 2024 | | | Operating lease right-of-use asset | | $ | 113,289 | | | $ | 209,788 | | | Finance leases in Property and Equipment | | | 5,689 | | | | 10,421 | | | Total lease assets | | $ | 118,978 | | | $ | 220,209 | | | Current portion of operating lease liability | | $ | 100,000 | | | $ | 113,260 | | | Current portion of finance lease liability included in accrued expenses | | | 4,807 | | | | 4,807 | | | Noncurrent operating lease liabilities | | | 20,211 | | | | 108,989 | | | Noncurrent finance lease liabilities | | | 4,540 | | | | 8,567 | | | Total lease liabilities | | $ | 129,558 | | | $ | 235,623 | |
The following table reconciles the undiscounted lease liabilities to
the total lease liabilities recognized on the consolidated balance sheet as of December 31, 2025:
| Year | |
Operating Lease | | |
Finance
Lease | |
| 2026 | |
$ | 100,000 | | |
$ | 4,807 | |
| 2027 | |
| 25,000 | | |
| 4,807 | |
| 2027 | |
| - | | |
| 400 | |
| Total future lease payments | |
| 125,000 | | |
| 10,014 | |
| Less: Imputed interest | |
| 4,789 | | |
| 667 | |
| Present value of lease liability | |
$ | 120,211 | | |
$ | 9,347 | |
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