LEASES

3 Months Ended

Mar. 31, 2025

NOTE 10 – LEASES

As discussed in Note 2, the Company adopted ASC 842 effective January 1, 2022 and applied a modified retrospective transition approach. The Company leases its office facilities under operating lease arrangements with varying expiration dates through 2028. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. ROU assets also include adjustments related to prepaid or deferred lease payments. As the Company’s leases do not provide an implicit rate, it uses the incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. Options to extend a lease are included in the lease term when it is reasonably certain that the Company will exercise such options. As of March 31, 2025, the remaining lease term of the Company’s operating leases ranges from less than one year to five years.

The components of operating lease expense are as follows:

Schedule of operating lease expense
	The Three Months Ended March 31,
	2025		2024
Operating lease expense in relation to the operating lease liability	$	38,160	$	47,975
Other lease expenses, such as variable expenses and short-term leases not capitalized		27,714		26,491
Total operating lease expense	$	65,874	$	74,466

As discussed in Note 2, the Company elected to exclude leases with a term of 12 months or less from its condensed consolidated balance sheets. For the three months ended March 31, 2025, the Company recorded operating lease expense of $28 thousand for those short-term leases.

Supplemental balance sheet information related to operating leases was as follows:


	March 31, 2025			December 31, 2024
Operating leases
Assets:
Operating lease right-of-use assets	$	143,796		$	177,685
Liabilities:
Current portion of operating lease liabilities	$	94,999		$	121,335
Operating lease liabilities, noncurrent		52,431			61,098
Total operating lease liabilities	$	147,430		$	182,433
Other information:
Weighted-average remaining lease term (in years)		1.7			1.8
Weighted-average discount rate %		10.00	%		10.00	%

As of March 31, 2025, maturities of operating lease liabilities were as follows:


	Amount
2025	$	94,200
2026		43,655
2027		12,578
2028		10,915
Future operating lease payments		161,348
Imputed interest		(13,918	)
Total operating lease liabilities	$	147,430

The Company did not have any finance leases during the three months ended March 31, 2025.