LEASES |
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| LEASES | NOTE 13. LEASES
Operating Leases
ASU 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease, initially measured at the present value of the lease payments. The Company’s leases consist of operating leases on buildings and office space.
In accordance with ASU 2016-02, right-of-use assets are amortized over the life of the underlying leases. Lease expense for the years ended December 31, 2025 and 2024 was $405,622 and $418,458, respectively. As of December 31, 2025 and 2024, the weighted average remaining lease term and weighted average discount rates for the operating leases were 3.30 years and 8.82% and 4.95 years and 8.76% respectively.
For the years ended December 31, 2025 and 2024, cash paid for amounts included in the measurement of operating lease liabilities was $401,504 and $409,712, respectively.
As of December 31, 2025, the Company recognized operating lease right-of-use assets of $897,610 and operating lease liabilities of $937,681, consisting of a current portion of $276,470 and a long-term portion of $661,211. At December 31, 2024, operating lease right-of-use assets totaled $1,052,926, with related lease liabilities of $1,091,350, of which $244,057 was current and $847,293 was long-term.
Future minimum lease payment under these operating leases consisted of the following:
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