v3.26.1
LEASES
 6 Months Ended
Jun. 30, 2026
Leases  
LEASES

NOTE 11 — LEASES

 

The Company and its subsidiaries are party to various office leases with terms expiring at different dates through February 2032. The amortizable life of the right-of-use asset is limited by the expected lease term. Although certain leases include options to extend, the Company did not include these in the right-of-use asset or lease liability calculations because it is not reasonably certain that the options will be executed.

        
   June 30,   December 31, 
Operating Leases  2026   2025 
Assets          
Right-of-use assets  $2,101,574   $2,884,619 
           
Liabilities          
Current          
Lease liabilities  $1,388,322   $1,829,814 
           
Noncurrent          
Lease liabilities  $967,138   $1,421,061 
           
Total lease liabilities  $2,355,460   $3,250,875 

         
          
   June 30,   December 31, 
Finance Leases  2026   2025 
Assets          
Right-of-use assets  $105,983   $128,322 
           
Liabilities          
Current          
Lease liabilities  $61,521   $82,668 
           
Noncurrent          
Lease liabilities  $49,061   $48,325 
           
Total lease liabilities  $110,582   $130,993 

  

The tables below show the lease income and expenses recorded in the condensed consolidated statements of operations incurred during the three and six months ended June 30, 2026 and 2025 for operating and financing leases, respectively.

                   
      Three Months Ended June 30,   Six Months Ended June 30, 
Lease costs  Classification  2026   2025   2026   2025 
Operating lease costs  Selling, general and administrative expenses  $549,050   $490,821   $1,079,433   $1,040,219 
Sublease income  Selling, general and administrative expenses   —    —    —    (12,665)
Net operating lease costs     $549,050   $490,821   $1,079,433   $1,027,554 

                    
      Three Months Ended June 30,   Six Months Ended June 30, 
Lease costs  Classification  2026   2025   2026   2025 
Amortization of right-of-use assets  Selling, general and administrative expenses  $24,432   $24,268   $52,825   $45,687 
Interest on lease liability  Selling, general and administrative expenses   2,050    2,923    4,246    5,726 
Net finance lease costs     $26,482   $27,191   $57,071   $51,413 

  

Lease Payments

 

For the six months ended June 30, 2026 and 2025, the Company made payments in cash related to its operating leases in the amounts of $1,463,927 and $1,129,444, respectively.

 

Future minimum lease payments for leases for the remainder of 2026 and thereafter, were as follows:

         
Year   Operating Leases   Finance Leases 
 2026   $982,427   $39,026 
 2027    961,086    51,514 
 2028    163,210    25,453 
 2029    159,255    1,993 
 2030    160,925    — 
 Thereafter    194,556    — 
 Total    $2,621,459   $117,986 
 Less: Imputed interest    (265,999)   (7,404)
 Present value of lease liabilities   $2,355,460   $110,582 

  

As of June 30, 2026, the Company’s weighted average remaining lease term on its operating and finance leases is 3.8 years and 1.92 years, respectively, and the Company’s weighted average discount rate is 8.78% and 7.49% related to its operating and finance leases, respectively.