11. LEASE RIGHT-OF-USE ASSET AND OPERATING LEASE LIABILITIES

Leases are classified as operating leases or finance leases in accordance with ASC 842. The Company’s operating leases are mainly related to office facilities. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments over the term. The Company’s lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or any sublease activities. Short-term leases, defined as leases with initial term of 12 months or less, are not reflected on the consolidated balance sheet.

During the quarter ended June 30, 2026, the Company entered into two new lease agreements primarily related to office facilities. As a result, the Company recognized new operating lease right-of-use assets of $72,157 and corresponding new lease liabilities of $72,157. These leases have a weighted-average remaining lease term of approximately 7.54 years. The weighted-average discount rate used to measure these lease liabilities was 6.54%.

During the quarter ended June 30, 2026, the Company reassessed its lease term assumptions for certain leased office facilities and determined that it is no longer reasonably certain to exercise certain renewal options. This reassessment was primarily driven by changes in the terms of the underlying lease agreements. As a result, the Company remeasured the related lease liabilities, resulting in a decrease of $66,287, with a corresponding reduction to the associated right-of-use assets.

The following table presents a summary of changes in the Company’s operating lease liabilities for the quarter ended June 30, 2026:

Other information: