FINANCE LEASE – RELATED PARTY, DENOMINATED IN EUROS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance Lease Related Party Denominated In Euros | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE LEASE – RELATED PARTY, DENOMINATED IN EUROS | NOTE 5. FINANCE LEASE – RELATED PARTY, DENOMINATED IN EUROS
In November 2025, the Company entered into a land lease agreement and purchase option (the “Lease Agreement”) with Sportech, pursuant to which Sportech has agreed to lease the Company a plot of land located at Puerto de Santa María, Spain (the “Property”) for an initial term of three years, which may be extended for an additional two year period by mutual agreement between the Company and Sportech. The Property is the intended site for the Company’s JP Financial Arena real estate development project.
The Lease Agreement requires the Company to pay monthly payments of €12,000 over the lease term. The Lease Agreement also contains a purchase option which may be exercised for either 1) the entirety of the Property at a price of €29.17 per square meter, or 2) at least 100,000 square meters of the Property at a price of €29.17 per square meter. As of the lease inception date, the Company had prepaid $2,643,498 toward the purchase option. Following the lease inception date and through December 31, 2025, the Company prepaid an additional $623,971 toward the purchase option. The Company has classified this lease as a finance lease. As of December 31, 2025, the unpaid portion of the purchase option, which is expected to be paid at the end of the lease term, is $1,830,382.
As of December 31, 2025, the finance lease right of use asset was $5,166,888. The Company’s finance lease cost consisted of interest expense of $36,063 and $0 of amortization of the right of use asset during the year ended December 31, 2025. The Company is not recording any amortization of the right off use asset as it is land and therefore has an indefinite estimated lifespan. Additionally, the Company believes that it is probable that it will exercise the purchase option of the Lease Agreement.
The weighted average remaining lease term of the Lease Agreement was 4.92 years as of December 31, 2025. The discount rate of the Lease Agreement was 8.00%. During the year ended December 31, 2025 the Company made payments of $12,993 towards the related party finance lease.
Future minimum payments under the finance lease as of December 31, 2025, are as follows:
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