v3.26.1
LEASES
 12 Months Ended
Dec. 31, 2025
Leases  
LEASES

NOTE 23 — LEASES

 

The Company and its subsidiaries are party to various office leases with terms expiring at different dates through February 2032. The amortizable life of the right-of-use assets is limited by the expected lease term. Although certain leases include options to extend the Company did not include these in the right-of-use assets or lease liabilities calculation because it is not reasonably certain that the options will be executed.

        
   December 31, 
Operating Leases  2025   2024 
Assets        
Right-of-use assets  $2,884,619   $4,606,341 
           
Liabilities          
Current          
Lease liabilities  $1,829,814   $1,839,323 
           
Noncurrent          
Lease liabilities  $1,421,061   $3,247,291 
           
Total lease liabilities  $3,250,875   $5,086,614 

        
   December 31, 
Finance Leases  2025   2024 
Assets        
Right-of-use assets  $128,322   $132,566 
           
Liabilities          
Current          
Lease liabilities  $82,668   $80,349 
           
Noncurrent          
Lease liabilities  $48,325   $58,742 
           
Total lease liabilities  $130,993   $139,091 

 

 

 

The table below shows the lease expenses recorded in the consolidated statements of operations incurred during the years ended December 31, 2025 and 2024.

    
    December 31, 
Operating Lease Costs Classification 2025  2024 
Operating lease costs Selling, general and administrative expenses $2,075,571  $2,751,175 
Sublease income Selling, general and administrative expenses  (12,665)  (414,741)
Net operating lease costs   $2,062,906  $2,336,434 

 

      
    December 31, 
Finance Lease Costs Classification 2024  2023 
Amortization of right-of-use assets Selling, general and administrative expenses $96,732  $78,995 
Interest on lease liabilities Selling, general and administrative expenses  10,966   10,273 
Total finance lease costs   $107,698  $89,268 

 

Lease Payments

 

For the years ended December 31, 2025 and 2024, the Company made cash payments related to its operating leases in the amount of $2,227,017 and $2,621,073, respectively.

 

Future minimum lease payments for leases in effect at December 31, 2025 were as follows:

         
Year   Operating Leases   Finance Leases 
 2026   $2,054,617   $85,277 
 2027    918,827    40,121 
 2028    155,710    13,832 
 2029    159,255    — 
 2030    160,925    — 
 Thereafter    194,136    — 
 Total    $3,643,470   $139,230 
 Less: Imputed interest    (392,595)   (8,237)
 Present value of lease liabilities   $3,250,875   $130,993 

 

As of December 31, 2025, the Company’s weighted average remaining lease terms on its operating and finance leases is 3.78 and 1.80 years, respectively, and the Company’s weighted average discount rate related to its operating and finance leases is 8.83% and 7.62%, respectively.