Note 15 - Commitments and Contingencies

The Company entered into a new office lease Effective September 1, 2025. The primary term of the lease is three years and two months with a renewal option for an additional two years. Minimum annual lease payments for the primary term and renewal are as follows:

 Schedule of Minimum Annual Lease Payments

Under the new standard for lease reporting, the Company recorded a Right of Use Asset (“ROU”) and an offsetting lease liability of $753,564 representing the present value of the future payments under the lease calculated using a 7.5% discount rate (the current borrowing rate of the company). The ROU and lease liability are amortized over the three-year life of the lease. The unamortized balances at June 30, 2026 and December 31, 2025 were ROU asset of $572,076 and $682,286, current portion of the lease liability of $231,257 and $220,206 and non-current portion of lease liability of $345,869 and $464,100, respectively.

Additionally, the Company recognized accreted interest expense of $23,998 and $18,194 and rent expense of $134,208 and $71,278 for the lease during the six months ended June 30, 2026 and year ended December 31, 2025 respectively.

Legal Proceedings

The Company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position, results of operations or liquidity.