Leases

12 Months Ended

Dec. 31, 2025

Note 5. Leases

The following provides balance sheet information related to leases as of December 31, 2025 and 2024:

	2025		2024
Assets
Operating lease, right-of-use asset, net	$	75,595	$	239,985
Liabilities
Current portion of operating lease liabilities	$	78,539	$	190,814
Operating lease liabilities, net of current portion		-		52,843
Total operating lease liabilities	$	78,539	$	243,657

At December 31, 2025, the future estimated minimum lease payments under non-cancelable operating leases are as follows:


Total minimum lease payments to be paid in 2026	$	81,000
Less amount representing interest		(2,461	)
Present value of future minimum lease payments		78,539
Less current portion of operating lease liabilities		(78,539	)
Operating lease liabilities, net of current portion	$	-

At December 31, 2025, the Company has a non-cancellable operating lease for office space in Atlanta, Georgia that requires monthly payments of $6,750 through December 31, 2026. The Company had a similar lease with the same landlord at December 31, 2024, which was terminated and replaced with the existing lease during 2025. The lease is subject to automatic renewal on a month-to-month basis unless the Company provides three-months written notice to the landlord. The exercise of lease renewal options is at the Company’s sole discretion and is assessed as to whether to include any renewals in the lease term at inception.

At December 31, 2024, the Company had a non-cancellable operating lease for office space in Dallas, Texas, which required monthly payments of approximately $11,200 through November 2025. Effective December 1, 2025, the Company entered into a new 12-month lease for office space in Dallas, which is accounted for as a short-term lease and excluded from operating lease liabilities and right-of-use assets.

The following table provides a reconciliation for the Company’s right of use assets and lease liabilities:

	Right-of-Use Asset			Operating Lease Liability
Balance at January 1, 2024	$	228,295		$	234,471
Early termination of operating leases		(163,722	)		(163,722
Operating right-of-use asset acquired through operating lease liability		348,623			348,623
Amortizations		(173,211	)		(175,715	)
Balance at December 31, 2024		239,985			243,657
Early termination of operating leases		(52,844	)		(52,844	)
Operating right-of-use asset acquired through operating lease liability		78,351			78,351
Amortizations		(189,897	)		(190,625	)
Balance at December 31, 2025	$	75,595		$	78,539

Other supplemental information related to operating leases is as follows:


	As of December 31,
	2025			2024
Weighted average remaining term of operating leases (in years)		1.00			1.30
Weighted average discount rate of operating leases		6.75	%		9.50	%

The Company also leased additional office space in Dallas, Texas under month-to-month lease arrangements during the years ended December 31, 2025 and 2024. In April 2023, the Company entered into a two-year2 lease for material storage and handling. In October 2025, the Company extended this lease to continue through September 2026. The lease is cancellable with 45-days’ written notice. Under these short-term leases, the Company elected the short-term lease measurement and recognition exemption under ASC 842 and recorded rent expense as incurred.

The components of lease expense were approximately as follows for the years ended December 31, 2025 and 2024:

Schedule of Lease Expense

	2025		2024
Operating lease cost	$	205,000	$	191,000
Short-term lease cost		24,000		19,000
Lease expense	$	229,000	$	210,000

During the years ended December 31, 2025 and 2024, cash used in operating activities associated with its operating leases was approximately $205,000 and $194,000, respectively.