| LEASES |
NOTE 11 — LEASES The following table depicts the Company’s future annual minimum leases payments as of December 31, 2025: | | | | | | Operating | | | Leases | Consumer | | | | 2026 | | $ | 1,130,777 | 2027 | | | 887,803 | 2028 | | | 652,641 | 2029 | | | 533,234 | 2030 | | | 203,190 | Thereafter | | | - | | | | | Total minimum lease payments | | | 3,407,645 | Less: imputed interest | | | (268,790) | | | | | Sub-total | | | 3,138,855 | | | | | Commercial | | | | 2026 | | | 1,280,989 | 2027 | | | 1,453,169 | 2028 | | | 1,476,504 | 2029 | | | 1,535,564 | 2030 | | | 1,596,986 | Thereafter | | | 550,061 | | | | | Total minimum lease payments | | | 7,893,273 | Less: imputed interest | | | (1,098,266) | | | | | Sub-total | | | 6,795,007 | | | | | Total | | | 9,933,862 | | | | | Less: current portion | | | 1,937,295 | | | | | | | $ | 7,996,567 |
All of the Company’s leased facilities, as of December 31, 2025, are non-cancellable. The leases are a combination of triple net leases, for which the Company pays its proportionate share of common area maintenance, property taxes, and property insurance, and modified gross leases, for which the Company directly pays for common area maintenance and property insurance. Lease costs are comprised of a combination of minimum lease payments and variable lease costs. The following table depicts supplemental cash flow information related to operating leases: | | | | | | | | | Year Ended December 31, | | | 2025 | | 2024 | | | | | | | | Non-cash activities: right-of-use operating lease assets obtained in exchange for new operating lease liabilities | | $ | 7,235,358 | | $ | 2,341,024 | | | | | | | |
The following table depicts the Company’s leasing costs for the years ended December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | 2025 | | 2024 | | | Consumer | | Commercial | | Consolidated | | Consumer | | Commercial | | Consolidated | | | | | | | | | | | | | | | | | | | | Operating lease cost | | $ | 1,117,351 | | $ | 1,448,929 | | $ | 2,566,280 | | $ | 747,356 | | $ | 1,357,709 | | $ | 2,105,065 | Variable lease cost | | | 242,983 | | | 477,629 | | | 720,612 | | | 217,362 | | | 590,599 | | | 807,961 | Short-term lease cost | | | 32,153 | | | 150,258 | | | 182,411 | | | 167,550 | | | 179,877 | | | 347,427 | | | | | | | | | | | | | | | | | | | | | | $ | 1,392,487 | | $ | 2,076,816 | | $ | 3,469,303 | | $ | 1,132,268 | | $ | 2,128,185 | | $ | 3,260,453 |
As of December 31, 2025, the weighted average remaining lease term and weighted average discount rate for operating leases were 4.6 years and 5.1%. As of December 31, 2024, the weighted average remaining lease term and weighted average discount rate for operating leases were 3.0 years and 3.9%.
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