OPERATING LEASE LIABILITIES

12 Months Ended

Dec. 31, 2025

NOTE 6 OPERATING LEASE LIABILITIES

In April 2022, the Company entered into a 58-month lease related to certain office and showroom space pursuant to a sublease that expires in February 2027. The Company recognized a right-of-use asset and a liability of $1,428,764 pursuant to this lease.

In September 2022, the Company entered a 124-month lease related to its future headquarters offices and showrooms space. The Company recognized a right-of-use asset and a liability of $22,192,503 pursuant to such lease. In connection with the execution of lease, the Company was required to provide the landlord with a letter of credit in the amount of $2.7 million, which is secured by the same amount of cash. In January 2024, the Company entered into a 35-month lease related to its Sacramento office. The Company recognized a right-of-use asset and a liability of $ 662,696 pursuant to such lease.

The following table outlines the total lease cost for the Company’s operating leases as well as weighted average information for these leases as of December 31, 2025, and 2024 respectively:

SCHEDULE OF LEASE COST OPERATING LEASE

	For the year ended December 31,
	2025			2024
Cash paid for operating lease liabilities	$	2,345,919		$	2,101,316
Rights-of-use obtained in exchange for new operating lease liabilities		-			662,696
Fixed rent payments		3,136,161			2,703,789
Lease - Depreciation expense	$	2,020,500		$	2,127,319
Weighted-average discount rate		6.48	%		6.45	%
Weighted-average remaining lease term (in months)		84			95

SCHEDULE OF MINIMUM LEASE OBLIGATION

Minimum Lease obligation


Twelve months ended December 31, 2026	$	2,589,994
Twelve months ended December 31, 2027		2,288,363
Twelve months ended December 31, 2028		2,471,537
Twelve months ended December 31, 2029		2,736,000
Twelve months ended December 31, 2030, and thereafter		10,295,553
Total	$	20,381,447