Leases

3 Months Ended

Mar. 31, 2026

Note 14 – Leases

The Company previously leased office space consisting of approximately 3,472 square feet in Boca Raton, Florida, which served as its corporate headquarters. The lease was originally scheduled to expire on August 31, 2026.

During 2025, the Company ceased use of the leased premises and defaulted under the lease arrangement. In connection with the default, the Company fully impaired the related right-of-use (“ROU”) asset and continued to recognize the associated lease liability.

As of March 31, 2026, the Company had an operating lease liability of approximately $135,609.

The default was accounted for in accordance with ASC 842 and resulted in:

●

a decrease in ROU assets of approximately $108,759

●

recognition of additional accrued obligations of approximately $236,511

As of March 31, 2026, the weighted-average remaining lease term and weighted-average discount rate under operating leases were as follows:


		March 31,
		2026
Lease term and discount rate
Weighted-average remaining lease term (years)		0.7
Weighted-average discount rate		7.00	%

Future minimum lease payments under non-cancelable operating leases as of March 31, 2026 were as follows:


Year	Amount
2026	$	149,381
Total lease payments	$	149,381
Less: imputed interest	$	(13,772)
Present value of lease liabilities	$	135,609

In connection with the lease default, the Company recognized:

●

a decrease in ROU assets of approximately $108,759

●

lease liabilities of approximately $135,609

●

additional accrued obligations of approximately $236,511 related to remaining payments, settlement costs and penalties

The Company recognized a loss on lease termination of approximately $199,724, which was included in other expense during the year ended December 31, 2025.