We determine whether an arrangement is a lease at inception and whether such leases are operating or financing leases. For each lease agreement, the Company determines its lease term as the non-cancellable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option. We use these options in determining our capitalized financing and right-of-use assets and lease liabilities.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. To determine the discount rate to use in determining the present value of the lease payments, we use the rate implicit in the lease if determinable, otherwise we use our incremental borrowing rate.

The Company maintains operating leases for corporate and field offices. The Company’s leases have initial terms ranging from one month to five years, some of which include the option to renew, and some of which include an early termination option. During the three months ended March 31, 2026, the Company extended certain of its leases for periods ranging from one to three years.

The Company maintains finance leases for vehicles that have a lease term of four to five years.

The Company has entered into sublease agreements for portions of its leased office buildings. The remaining enforceable lease term of the original lease is one year. The Company continues to recognize the right-of-use asset and lease liability for the original lease, while rental income from the subleases is recognized over the term of the sublease. The Company recognized rental income $105,019 and $0 for the three months ended March 31, 2026 and 2025, respectively.

The following table summarizes the weighted-average remaining lease term and discount rate for operating and finance leases as of March 31, 2026 and December 31, 2025:


	March 31, 2026		December 31, 2025
Weighted-average remaining lease term for operating leases	2.35 years		2.31 years
Weighted-average discount rate for operating leases	4.97	%	6.15	%

Weighted-average remaining lease term for finance leases	3.40 years		N/A
Weighted-average discount rate for finance leases	3.85	%	N/A

The following table summarizes the future minimum payments for operating and finance leases as of March 31, 2026, due in each year ending December 31:


	Minimum Lease Payments
Year	Operating Leases		Finance Leases
Remainder of 2026	$	1,813,144	$	553,318
2027	1,648,498		660,695
2028	650,065		527,552
2029	341,971		383,663
2030	59,859		106,310
Thereafter	6,448		—
Total lease payments	4,519,985		2,231,538
Less: imputed interest	(228,019)		(134,917)
Present value of lease liabilities	$	4,291,966	$	2,096,621