v3.26.1
LEASE
3 Months Ended
Mar. 31, 2026
Lease  
LEASE

NOTE H - LEASE

 

In September 2024, the Company entered into an office suite lease. The term of the lease is for a period of 12 months. The Lease auto-renews for an additional 2 years, unless the owner is notified of a termination. The Company intends to renew the lease and therefore it was considered to be a 3-year lease for purposes of calculating the Right-of-Use Asset. This lease is classified as an operating lease in the accompanying condensed consolidated balance sheet. A security deposit of $1,995 was paid in connection with this lease. A discount rate of 8% was utilized upon recognition of the lease asset and liability. The initial present value of the lease payments was $7,689. The payments under the lease commence at $650 per month and escalate to $690 per month over the three years, and are summarized are as follows:

 

      
2026 (remainder of year)  $6,085 
      
2027   5,517 
      
Total payments   11,602 
      
Less interest   5,532 
      
Total liability  $6,070 

 

The amounts recorded on the condensed consolidated balance sheet at March 31, 2026 were as follows:

 

      
Right-of-use asset, net  $3,630 
Lease liability -long term portion  $3,210 
Lease liability – current portion  $2,860 

 

NOTE I – COMMITMENTS AND CONTINGENCIES

 

From time to time, we may be subject to litigation and claims arising in the ordinary course of business. We are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results, cash flows or financial condition.