Note 11 - Leases

The Company accounts for leases under ASC 842, whereby it recognizes a lease liability and a right-of-use asset. The lease liability is measured at the present value of the remaining lease payments, discounted by the Company’s incremental borrowing rate. The Company measured the right of use asset at an initial amount equal to the lease liability.

On April 1, 2025, the Company signed a lease agreement for 12,500 square feet of office space to be used as a R&D facility pursuant to a three-year lease with an option to extend the lease for an additional two years. The lease was effective on May 1, 2025 at a rate of $9,659 per month with a termination date of April 30, 2028. The Company’s incremental borrowing rate used to initially measure the present value of the remaining lease payments was 15%.

On July 14, 2025, the Company signed a lease agreement for 1,992 square feet of office space to be used as an R&D facility for its Terravis Energy subsidiary pursuant to a two-year lease effective July 18, 2025 for an average monthly rent of $3,154. The Company’s incremental borrowing rate used to initially measure the present value of the remaining lease payments was 15%.

The Company’s right-of-use asset and lease liability as of March 31, 2026, and December 31, 2025, are as follows:

 Schedule Right-of-use Asset

The following is a summary of the Company’s total lease costs:

 Schedule of Lease Cost

The following is a summary of cash paid during the three months ended March 31, 2026 and 2025 for amounts included in the measurement of lease liabilities:

 Schedule of Measurement of Lease Liabilities

The following are future calendar year minimum lease payments as of March 31, 2026:

 Schedule of Future Minimum Annual Lease Payments