| Operating and Finance Leases |
NOTE 12
- Operating and Finance Leases
As of December
31, 2025, the Company had four operating leases for office usage remaining.
Lease term
and discount rate:
The weighted-average
remaining lease term and discount rate related to the leases were as follows:
| | | December 31,
2025 | | | December 31,
2024 | | | | | | | | | | | Weighted-average remaining lease term | | | | | | | | Operating lease | | | 1.70 Years | | | | 1.44 Years | | | Finance lease | | | - Years | | | | - Years | | | Weighted-average discount rate | | | | | | | | | | Operating lease | | | 6.00 | % | | | 6.00 | % | | Finance lease | | | - | % | | | - | % |
The
supplemental balance sheet information related to leases for the period is as follows:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| | |
| | |
| |
| Operating leases | |
| | |
| |
| Right of use
assets | |
| 404,637 | | |
| 176,406 | |
| | |
| | | |
| | |
| Lease Liability – current
portion | |
| 176,873 | | |
| 168,251 | |
| Lease
Liability – net of current portion | |
| 227,765 | | |
| 56,303 | |
| Total operating lease
liabilities | |
$ | 404,638 | | |
$ | 224,554 | |
The
components of lease expense are as follows within the consolidated statements of operations and comprehensive loss for the years ended
December 31, 2025 and 2024:
Operating
Leases
| | |
For the Years Ended | |
| | |
December
31, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Lease expense | |
| 166,289 | | |
| 128,088 | |
| Sublease rental income | |
| (8,023 | ) | |
| (7,923 | ) |
| Net lease expense | |
$ | 158,266 | | |
$ | 120,165 | |
Finance
Leases
| | |
For the Years Ended | |
| | |
December
31, | |
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Amortization of right-of-use asset | |
| - | | |
| 8,814 | |
| Interest on lease liabilities | |
| - | | |
| 257 | |
| Total finance lease
cost | |
| - | | |
| 9,071 | |
The following
table sets forth the Company’s minimum lease payments in future periods:
| | |
Operating
lease
payments | |
| | |
| |
| Twelve months ending December 31, 2026 | |
$ | 194,938 | |
| Twelve months ending December 31, 2027 | |
| 137,649 | |
| Twelve months ending December 31, 2028 | |
| 102,472 | |
| Total lease payments | |
$ | 435,059 | |
| Less: Imputed interest | |
| (30,421 | ) |
| Present value of lease liabilities | |
$ | 404,638 | |
| Current portion | |
| (176,873 | ) |
| Non-current portion | |
$ | 227,765 | |
|