v3.25.2
OPERATING LEASES
 6 Months Ended
Jun. 30, 2025
Operating Leases  
OPERATING LEASES

NOTE 15 – OPERATING LEASES

 

The Company entered into a Motor Vehicle Lease Agreement (Vehicle Lease”) on December 22, 2024. Amount due at signing is $10,526 followed by thirty-six monthly payments of $1,173.54, for total payments of $42,247.44.

 

Adoption of Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842), resulted in recording an initial right-of-use (“ROU”) assets and operating lease liabilities of $45,467 on May 1, 2022.

 

On January 24, 2025, Clean Seas West Virginia, Inc (“CSWV”) entered into a Lease Agreement (the “Lease”) with Quincy Coal Company (the “Lessor”) relating to approximately 62,650 square feet of property located at 1 2700 East Dupont Ave, Belle, West Virgina. The term of the Lease is for ten years commencing March 1, 2025. The monthly base rent is $16,667 for the first twelve (12) months, increasing each year thereafter. The total rent for the entire lease term is approximately $2,401,000.

  

Adoption of Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842), resulted in recording an initial right-of-use (“ROU”) assets and operating lease liabilities of $ 1,776,746 on March 1, 2025.

 

                 
Asset   Balance Sheet Classification   June 30, 2025   December 31,
2024
Operating lease assets   Right of use assets   $ 1,768,498   $ 45,467  
Total lease assets       $ 1,768,498   $ 45,467  
                   
Liability                  
Operating lease liability – current portion   Current operating lease liability   $ z204,391   $ 11,814  
Operating lease liability – noncurrent portion   Long-term operating lease liability     1,545,257     31,353  
Total lease liability       $ 1,749,648   $ 43,167  

  

Lease obligations at June 30, 2025 consisted of the following: 

 

       
For the year ended December 31:      
2025   $ 107,040  
2026     220,749  
2027     227,842  
2028     223,531  
2029     232,472  
Thereafter     1,356,952  
Total payments   $ 2,368,586  
Amount representing interest   $ (618,938)  
Lease obligation, net     1,749,648  
Less current portion     (204,391)  
Lease obligations – long term   $ 1,545,257  

 

Lease expense for the six months ended June 30, 2025 for the auto and property lease, was $11,481 and $80,041, respectively.