5.     LEASE

The Company entered into an operating lease for office space which became effective in June 2020. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of June 30, 2026, the remaining lease term was 3.9 years and the discount rate used was 6%.

The Company entered into an operating lease for additional office space which became effective in September 2025. The lease term is 7.4 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of June 30, 2026, the remaining lease term was 6.6 years and the discount rate used was 8%.

Operating lease cost included in selling, general and administrative expenses was $395,394 and $760,454 for the three and six months ended June 30, 2026, respectively, including common area maintenance expenses of $72,358 and $147,865, respectively. Operating lease cost included in selling, general and administrative expenses was $189,425 and $378,851 for the three and six months ended June 30, 2025, respectively, including common area maintenance expenses of $33,832 and $70,664, respectively. Cash paid for operating leases was $524,220 and $291,704 for the six months ended June 30, 2026 and 2025, respectively.

Additional information related to the Company’s operating leases was as follows:

The following is the lease maturity analysis of our operating leases as of June 30, 2026: