NOTE 7 — OPERATING LEASES

The Company periodically enters operating lease contracts for office space and equipment. Arrangements are evaluated at inception to determine whether such arrangements constitute a lease. Right of use assets (“ROU assets”) represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities were recognized on the transition date based on the present value of lease payments over the respective lease term, with the office space ROU asset adjusted for deferred rent liability.

As of June 30, 2026, the Company had two material operating leases for office space. The leases had remaining lease terms of 57 and 26 months as of June 30, 2026, respectively. For practical expediency, the Company has elected not to recognize ROU assets and lease liabilities related to short-term leases and to not separate lease and non-lease components.

The present value of the Company’s operating lease liabilities is presented below:

Maturity of Operating Lease Liabilities

 SCHEDULE OF OPERATING LEASE LIABILITY

The Company recorded lease expense of $152,770 and $128,629 for the three months ended June 30, 2026 and 2025, respectively, and $305,541 and $260,197 for the six months ended June 30, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $308,435 and $259,786 for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company’s operating leases had a weighted average remaining lease term of 4.5 years and a weighted average discount rate of 13.3%.