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| Leases | Note 10 – Leases
The Company has various operating lease agreements in place for its office and joint ventures. Per FASB’s ASU 2016-02, Leases Topic 842 (“ASU 2016-02”), effective January 1, 2019, the Company is required to report a right-of-use (“ROU”) asset and corresponding liability to report the present value of the total lease payments, with appropriate interest calculation. The Company utilizes the incremental borrowing rate for each lease by developing a synthetic credit rating for the Company as of the commencement date of each lease, adjusting the synthetic credit rating to reflect the collateralized nature of the incremental borrowing rate, the Company’s borrowing rate under other debt facilities, and the market spread between secured and unsecured borrowings, and based on the adjusted synthetic rating and the various terms of the leases, selected the incremental borrowing rate based on the commencement date, duration of the lease, and a corresponding weight-adjusted corporate yield curve. Lease renewal options included in any lease are considered in the lease term if it is reasonably certain the Company will exercise the option to renew. The Company’s operating lease agreements do not contain any material restrictive covenants.
As of December 31, 2025, the Company’s lease components included in the consolidated balance sheet were as follows:
Future minimum lease payments as of December 31, 2025 were as follows:
For the years ended December 31, 2025 and 2024, the weighted average remaining lease term for operating leases was 78 months and 85 months, respectively. For the years ended December 31, 2025 and 2024, the weighted average discount rate for operating leases was 14.6% and 14.2%, respectively. The Company paid approximately $0.4 million in cash for operating lease amounts included in the measurement of lease liabilities for the year ended December 31, 2025 and approximately $0.4 million for the year ended December 31, 2024. The Company did not have any finance leases as of December 31, 2025 and 2024.
For the year ended December 31, 2024, the Company recognized a gain on lease termination of $94,551 related to the termination of the lease associated with a former project in Tampa, FL.
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