4. Leases

Operating Leases

On November 8, 2022, the Company entered into a lease agreement with DLL Finance, LLC, for golf carts. Total monthly payments under the lease of $20,654 commenced in January 2023, and continue for a period of 48 months.

On November 16, 2023, the Company entered into a lease agreement with DLL Finance, LLC for golf carts. Total monthly payments under the lease of $4,435 commenced in December 2023, and continue for a period of 54 months.

On August 9, 2024, the Company entered into two new lease agreements with DLL Finance LLC for golf carts. Total monthly payments under the new leases of $4,992 and $7,205 commenced in September 2024, and continue for a period of 60 months.

Operating lease liabilities are recorded based on the present value of the future lease payments over the lease term.

Operating lease expense approximated $382,000 and $305,000 for each of the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, the weighted-average remaining lease term for operating leases was 2.04 years and the weighted-average discount rate was 6.56%. As of December 31, 2024, the weighted-average remaining lease term for operating leases was 3.04 years and the weighted-average discount rate was 6.25%.

Finance Leases

The Company is also obligated under certain leases for telephone equipment. The leases expire in the fourth quarter of 2027 and the monthly lease payments are $6,644. The leases contain bargain purchase options that allow the Company to purchase the leased equipment for a minimal amount upon the expiration of the lease term.

The Company is also obligated under a lease for copier equipment. The lease expires in the fourth quarter of 2028 and the monthly lease payment is $1,799. The Company has the option to purchase the leased equipment at fair market value upon the expiration of the lease term. Equipment acquired under finance leases is pledged as collateral to secure the performance of the future minimum lease payments.