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| Leases | Note 7 – Leases
The Company has an operating lease for its office facilities and has no financing leases. The Company previously leased office space under a 24-month operating lease that, as amended on November 27, 2024, expired on January 31, 2025.
In April 2025, the Company entered into a 63-month lease for office space, which calls for a monthly base rent of $6,778, increasing at approximately 3% per annum. The lease liability was computed using an interest rate of 3.72%, and as of June 30, 2026, the lease has a remaining 48 months. In calculating the present value of future lease payments, the Company utilized its incremental borrowing rate based on the lease term. The Company’s non-lease components (e.g., common area maintenance, maintenance, consumables, etc.) are paid separately from rent based on actual costs incurred and, therefore, are not included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. Upon commencement of the lease, the Company recognized a right-of-use asset and corresponding operating lease liability of $412,129.
As of June 30, 2026 and December 31, 2025, the Company reported a right-of-use asset of $322,049 and $361,045, respectively, and a lease liability of $328,217 and $361,813, respectively. The Company recorded lease expense of $21,668 and $43,377 during the three and six months ended June 30, 2026, respectively, and $15,581 and $40,303 during the three and six months ended June 30, 2025, respectively, within general and administrative expenses on the condensed consolidated statements of operations. There were no short-term or variable lease costs during the three and six months ended June 30, 2026 or 2025. Cash paid for amounts included in the measurement of lease liabilities amounted to $20,934 and $41,269 during the three and six months ended June 30, 2026, respectively, and $13,557 and $38,557 during the three and six months ended June 30, 2025, respectively.
The following are the expected maturities of lease liabilities for operating leases as of June 30, 2026:
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