LEASES

6 Months Ended

Jun. 30, 2025

NOTE 9 – LEASES

During the six months ended June 30, 2025, the Company did not enter into additional leases with terms longer than 1 year. We elected not to recognize ROU assets and lease liabilities arising from short-term leases with initial terms of twelve months or less (deemed immaterial) on the condensed consolidated balance sheets.

When measuring lease liabilities for leases that were classified as operating leases, we discounted lease payments using our estimated incremental borrowing rate. The weighted average incremental borrowing rate applied was 7.86%. As of June 30, 2025, our leases had a remaining weighted average term of 3.17 years.

Operating leases are included in the consolidated balance sheets as follows:

	Classification	June 30, 2025		December 31, 2024
Lease assets
Operating lease cost ROU assets, net	Assets	$	2,968.3	$	3,416.1
Total lease assets		$	2,968.3	$	3,416.1

Lease liabilities
Operating lease liabilities, current	Current liabilities	$	880.6	$	1,080.8
Operating lease liabilities, non-current	Liabilities		2,136.3		2,559.7
Total lease liabilities		$	3,016.9	$	3,640.5

The components of lease costs, which are included in loss from operations in our consolidated statements of operations were as follows:

	Three months ended

	June 30, 2025		June 30, 2024
Lease costs
Operating lease costs	$	302.5	$	66.2
Variable lease costs		41.5		21.6
Short-term lease costs		8.5		22.1
Total lease costs	$	352.5	$	109.9

	Six months ended

	June 30, 2025		June 30, 2024
Lease costs
Operating lease costs	$	577.4	$	111.6
Variable lease costs		67.7		56.1
Short-term lease costs		17.0		25.7
Total lease costs	$	662.1	$	193.4

Future minimum payments under non-cancellable leases for operating leases for the remaining terms of the leases following the year ended June 30, 2025, are as follows:


2025	$	569.4
2026		1,009.6
2027		1,005.1
2028		770.9
2029		87.9
Total future minimum lease payments		3,442.9
Amount representing interest		(426.0	)
Present value of net future minimum lease payments	$	3,016.9