NOTE 7 – OPERATING LEASES

The Company periodically enters operating lease contracts for office space and equipment. Arrangements are evaluated at inception to determine whether such arrangements constitute a lease. Right of use assets (“ROU assets”) represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities were recognized on the transition date based on the present value of lease payments over the respective lease term, with the office space ROU asset adjusted for deferred rent liability.

As of March 31, 2026, the Company had two material operating leases for office space. The leases had remaining lease terms of 60 and 29 months as of March 31, 2026, respectively. For practical expediency, the Company has elected not to recognize ROU assets and lease liabilities related to short-term leases and to not separate lease and non-lease components.

The present value of the Company’s operating lease liabilities is presented below:

Maturity of Operating Lease Liabilities

 SCHEDULE OF OPERATING LEASE LIABILITY

The Company recorded lease expense of $152,771 and $131,568 for the three months ended March 31, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $154,217 and $135,594 for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, the Company’s operating leases had a weighted average remaining lease term of 4.7 years and a weighted average discount rate of 13.3%.