| LEASES |
NOTE
9. LEASES
The
balances for operating leases where the Company is the lessee are presented within the condensed balance sheets as follows:
SCHEDULE OF BALANCES FOR THE OPERATING LEASES
| Operating Leases | |
June 30, 2026 | | |
December 31, 2025 | |
| Right of use-assets | |
$ | 18,920,775 | | |
$ | 6,516,415 | |
| | |
| | | |
| | |
| Lease liability-current | |
| 2,550,653 | | |
| 963,731 | |
| Lease liability-non-current | |
| 16,690,631 | | |
| 5,650,165 | |
| Total Operating Lease Liabilities | |
$ | 19,241,284 | | |
$ | 6,613,896 | |
| | |
| | | |
| | |
| Weighted average remaining lease term (in years) | |
| 7.82 | | |
| 7.19 | |
| Weighted average discount rate (%) | |
| 7.83 | | |
| 6.50 | |
The
components of lease expenses for the six months ended June 30, 2026 and 2025 were as follows:
SCHEDULE OF COMPONENTS OF LEASE EXPENSES
| | |
2026 | | |
2025 | |
| | |
For the Six Months Ended June 30, | |
| | |
2026 | | |
2025 | |
| Operating lease cost | |
$ | 764,471 | | |
$ | 215,862 | |
| Cost of other leases with period less than one year and variable lease costs | |
| 238,947 | | |
| 168,699 | |
| Lease expenses | |
$ | 1,003,418 | | |
$ | 384,561 | |
The
components of lease expenses for the six months ended June 30, 2026 and 2025 were approximately $0.8 million and $0.4 million, respectively.
During the six months period ended June 30, 2026, the Company purchased the property located at 400 Piney Narrows
Road, Chester, Maryland, which it had previously leased from the seller under an operating lease that commenced on December 1, 2025. The
purchase price was $2.5 million in cash. Upon closing, the lease terminated and the Company derecognized the related right-of-use asset
of $1.5 million.
Supplemental
cash flow information related to leases for the six months ended June 30, 2026 and 2025 were as follows:
SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
| Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | |
2026 | | |
2025 | |
| | |
For the Six Months Ended June 30, | |
| Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | |
2026 | | |
2025 | |
| Operating cash flows from operating leases | |
$ | 1,003,418 | | |
$ | 384,561 | |
As
of June 30, 2026, the maturities of operating lease liabilities (excluding short-term lease) are as follows:
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES
| | |
Operating Lease | |
| Remainder of 2026 | |
$ | 1,827,924 | |
| 2027 | |
| 3,548,679 | |
| 2028 | |
| 3,290,436 | |
| 2029 | |
| 2,988,142 | |
| 2030 | |
| 2,477,012 | |
| 2031 and thereafter | |
| 11,377,381 | |
| Total Lease Payments | |
| 25,509,574 | |
| Less: imputed interest | |
| (6,268,290 | ) |
| Present Value of Lease Liabilities | |
$ | 19,241,284 | |
| Less: current portion | |
| (2,550,653 | ) |
| Lease Obligations, Noncurrent | |
| 16,690,631 | |
|