NOTE 7 – OPERATING LEASES

The Company periodically enters operating lease contracts for office space and equipment. Arrangements are evaluated at inception to determine whether such arrangements constitute a lease. Right of use assets (“ROU assets”) represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities were recognized on the transition date based on the present value of lease payments over the respective lease term, with the office space ROU asset adjusted for deferred rent liability.

As of June 30, 2025, the Company had two material operating leases for office space. The leases had remaining lease terms of 69 and two months as of June 30, 2025, respectively. In August 2025, the Company renewed the lease which was set to expire in two months, for an additional three-year term. For practical expediency, the Company has elected not to recognize ROU assets and lease liabilities related to short-term leases.

In accordance with ASC Topic 842, Leases, the Company has recorded ROU assets of $1,088,149 and a related lease liability of $1,234,225 as of June 30, 2025. The Company recorded lease expense of $128,629 and $138,798 for the three months ended June 30, 2025 and 2024, respectively. The Company recorded lease expense of $260,197 and $277,596 for the six months ended June 30, 2025 and 2024, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $259,786 and $267,223 for the six months ended June 30, 2025 and 2024, respectively.

The present value of the Company’s operating lease liabilities as of June 30, 2025 is shown below:

Maturity of Operating Lease Liabilities

SCHEDULE OF OPERATING LEASE LIABILITY

As of June 30, 2025, the Company’s operating leases had a weighted average remaining lease term of 5.6 years and a weighted average discount rate of 13.2%.