v3.26.1
Note 12 - Lease
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

NOTE 12 LEASE

 

Operating Lease

 

Under ASC Topic 842, Leases (“ASC 842”), operating lease expense is generally recognized evenly over the term of the lease. The Company has an operating lease primarily consisting of office space with a remaining lease term of 60 months.

 

On  May 8, 2025 we entered into the Fifth Amendment to Commercial Lease Agreement, extending the term of the Lease until  December 31, 2030 ("New Expiration Date"). We have concluded the Fifth Amendment to Commercial Lease Agreement qualifies as a lease modification (renewal) under ASC 842. As a result of the modification, The Company has remeasured the lease liability and right-of-use (ROU) asset as of the effective date of the amendment. The Company’s weighted average remaining lease term was approximately 3.1 years, and the weighted average discount rate applied in the calculation of the lease liability was approximately 12.5%.

 

The Company has further concluded that the Lease Extension has no effects on the classification of the Lease. Rent expenses for the twelve months ended December 31, 2025, and 2024 were $292,145 and $299,183, respectively.

 

Lease Position

 

Operating lease asset and liability for our operating lease were recorded in the consolidated balance sheet as follows:

 

  

December 31, 2025

 

Assets

    

Operating lease asset

 $753,013 

Total lease asset

 $753,013 
     

Liabilities

    

Current liabilities:

    

Operating lease liability

 $103,531 
     

Long-term liabilities:

    

Operating lease liability, net of current portion

 $720,104 

Total lease liability

 $823,635 

 

Future Minimum Lease Payments

 

Future lease payments included in the measurement of operating lease liability on the consolidated balance sheet as of December 31, 2025, for the following five fiscal years and thereafter as follows:

 

Year ending

 

Operating

 

December 31,

 

Leases

 

2026

  215,930 

2027

  224,567 

2028

  233,550 

2029

  242,892 

Thereafter

  252,608 

Total minimum lease payments

 $1,169,547 

Less effects of discounting

  (345,912)

Present value of future minimum lease payments

 $823,635 

 

Cash Flows

 

The table below presents certain information related to the cash flows for the Company’s operating lease for twelve months ending December 31, 2025:

 

  

Twelve Months Ended

 
  

December 31, 2025

 

Cash paid for amounts included in the measurement of lease liabilities:

    

Operating cash flows for operating leases

 $209,744