v3.26.1
RIGHT OF USE ASSETS AND LEASE LIABILITIES – OPERATING LEASES
3 Months Ended
Mar. 31, 2026
Disclosure Text Block [Abstract]  
RIGHT OF USE ASSETS AND LEASE LIABILITIES – OPERATING LEASES

9. RIGHT OF USE ASSETS AND LEASE LIABILITIES OPERATING LEASES

 

The Company has operating leases for offices, warehouses, vehicles, and office equipment. The Company’s leases have remaining lease terms of 1 year to 3 years, some of which include options to extend.

 

The Company’s lease expense for the three months ended March 31, 2026 and 2025 was entirely comprised of operating leases and amounted to $75,877 and $70,866, respectively.

 

The Company’s ROU asset amortization for the three months ended March 31, 2026 and 2025 was $68,896 and $61,469, respectively. The difference between the lease expense and the associated ROU asset amortization consists of interest.

 

The weighted-average discount rate for operating leases was 7.00% at March 31, 2026 and December 31, 2025. The weighted-average remaining lease term of operating leases was 1.68 and 2.16 years at March 31, 2026 and December 31, 2025, respectively.

 

Right of use assets – operating leases are summarized below:

 

   March 31,
2026
   December 31,
2025
 
   (unaudited)     
Building  $349,168   $411,060 
Vehicles   94,325    101,329 
Right of use assets, net  $443,493   $512,389 

 

Operating lease liabilities are summarized below:

 

   March 31,
2026
   December 31,
2025
 
   (unaudited)     
Building  $359,013   $419,168 
Vehicles   94,325    101,329 
Warehouse equipment   -    - 
Office equipment   -    - 
Lease liability  $453,338   $520,497 
Less: current portion   (294,679)   (285,534)
Lease liability, non-current  $158,659   $234,963 

 

Maturity analysis under these lease agreements are as follows for the year ended December 31:

 

2026  $237,186 
2027   201,164 
2028   34,950 
2029   8,737 
2030   - 
Total  $482,037 
Less: Present value discount   (28,699)
Lease liability  $453,338