v3.26.1
Leases
3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
LEASES

NOTE 6 – LEASES

 

On July 10, 2020, the Company entered into a rental lease agreement with the wife of Mr. Stavros Galanakis for its subsidiary in Vari, Greece. The term of the lease is from July 10, 2020, to December 31, 2021, with a fixed monthly rental payment of 5,000€. Then on April 1, 2021, the rental lease agreement was modified with the new term beginning as of April 1, 2021, and ending on December 31, 2022, with a fixed monthly rental payment of 3,500€.

 

Then on October 1, 2021, the Company entered into a second lease agreement with the wife of Mr. Stavros Galanakis for its new subsidiary in Vari, Greece for Ultra Ship Management. The term of the lease is from October 1, 2021, to December 31, 2024, with a fixed monthly rental of 1,000€.

 

In January 2023, the Company renewed the office lease for its subsidiary in Vari, Greece. The Company accounted for its new lease as an operating lease under the guidance of Topic 872. The new lease is 3,500€ per month, with no annual increase during the 8-year term. The Company used an incremental borrowing rate of 4.92% based on the average interest rate of corporate loans in Greece from the Bank of Greece. At the lease inception the company recorded a Right of Use Asset of $291,467 and a corresponding Lease Liability of $291,467.

 

In October 2024, the Company renewed the office lease for its subsidiary, Ultra Ship Management, in Vari, Greece. The Company accounted for its new lease as an operating lease under the guidance of Topic 842. The new lease is 1,000€ per month, with no annual increase during the 3-year term. The Company used an incremental borrowing rate of 4.98% based on the average interest rate of corporate loans in Greece from the Bank of Greece. At the lease inception the company recorded a Right of Use Asset of $34,377 and a corresponding Lease Liability of $34,377.

 

Total future minimum payments required under the lease agreements are as follows:

 

    ELVG Hellas     Ultra Mgmt.     Total  
    Amount     Amount  
2026   $ 36,086     $ 10,310     $ 46,397  
2027     48,115       10,310       58,425  
2028     48,115               48,115  
2029     48,115               48,115  
Thereafter     48,115               48,115  
Total undiscounted minimum future lease payments     228,547       20,621       249,168  
Less Imputed interest     (29,232 )     (1,327 )     (30,559 )
Present value of operating lease liabilities   $ 199,315     $ 19,294     $ 218,609  
Disclosed as:                        
Current portion     38,308       12,746       51,054  
Non-current portion   $ 161,007     $ 6,549     $ 167,555  

 

The Company recorded rent expenses of $15,809 and $14,197 for the three months ended March 31, 2026, and 2025, respectively.