Leases

6 Months Ended

Jun. 30, 2026

6. Leases

The Company’s leases consist principally of leases for office and warehouse space. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of the lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of the lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the Company’s current leases do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is estimated to discount the lease payments based on information available at the lease commencement.

These leases contain both lease and non-lease components, which the Company has elected to treat as a single lease component. The Company elected not to recognize leases that have an original lease term, including reasonably certain

renewal or purchase obligations, of twelve months or less in its condensed consolidated balance sheets for all classes of underlying assets. Lease costs for such short-term leases are expensed on a straight-line basis over the lease term.

All lease assets denominated in a foreign currency are measured using the exchange rate at the commencement of the lease. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of the condensed consolidated balance sheet date.

Lease assets and liabilities

The following table presents the lease-related assets and liabilities and their respective classification on the condensed consolidated balance sheets:


		June 30,		December 31,
		2026		2025
ASSETS
Noncurrent
Operating lease right-of-use assets		$	2,744,138	$	2,930,441
Total operating lease right-of-use assets		$	2,744,138	$	2,930,441

LIABILITIES
Current
Current maturities of operating leases		$	769,837	$	661,047
Noncurrent
Noncurrent operating leases			1,999,465		2,297,161
Total lease liabilities		$	2,769,302	$	2,958,208

Weighted average remaining lease term:
Operating leases			3.8 years		4.2 years

Weighted average discount rate:
Operating leases			6.55%		6.55%

The components of lease costs were as follows:


		Three Months Ended June 30,					Six Months Ended June 30,
		2026		2025			2026		2025
Operating lease costs		$	226,220	$	219,578		$	435,791	$	427,133
Short-term lease costs			62,900		100,303			120,652		199,328
Lease costs - discontinued operations			1,167		1,921			2,343		4,618
Total lease costs		$	290,287	$	321,802		$	558,786	$	631,079

Supplemental cash flow information related to leases is as follows:

Future lease payments relating to the Company’s operating lease liabilities from continuing operations as of June 30, 2026 were as follows:


Years ending December 31,		Total
2026		$	484,371
2027			903,681
2028			837,819
2029			546,333
2030			302,193
Thereafter			76,064
Total future lease payments			3,150,461
Less: imputed interest			(381,159)
Total lease obligations			2,769,302
Less: current obligations			(769,837)
Noncurrent lease obligations		$	1,999,465

Six Months Ended June 30,

Cash paid for amounts included in measurement of liabilities:

Operating cash outflows for operating leases