NOTE 5 – LEASE 

In September 2021, the Company signed a lease with a third party for office space in Boca Raton, Florida. The lease agreement has a 64-month term and commenced during the fourth quarter of 2021. During March 2026, the Company exercised its option to renew the term of its office space in Boca Raton, Florida. The option renewal provides for an additional three-year term commencing April 1, 2027. Base rent under the extension will be approximately $17,000 per month during the first year, increasing by approximately 3% annually over the term.

As of June 30, 2026, the maturities of our lease liabilities are as follows:

The weighted-average lease term as of June 30, 2026 and December 31, 2025 was 2.5 years and 1.5 years, respectively. As of June 30, 2026 and 2025, the weighted-average discount rate for operating leases was 12.0%.

During the three and six months ended June 30, 2026, the Company recognized $206,000 and $353,000, respectively, in operating lease expense. During the three and six months ended June 30, 2025, the Company recognized $55,000 and $95,000, respectively, in operating lease expense.