LEASES

6 Months Ended

Jun. 30, 2026

NOTE 11 - LEASES

The Company has an operating lease for office space and a finance lease for equipment. Leasing arrangements require fixed payments and also include an amount that is probable and will be owed under residual value guarantees, if applicable. Lease payments also include payments related to purchase or termination options when the lessee is reasonably certain to exercise the option or is reasonably certain not to exercise the option, respectively. The Company’s lease agreements do not contain any material restrictive covenants. The leases have remaining terms of 3 to 5 years. The Company executed a finance lease during the year ended December 31, 2024, the lease period commenced January 1, 2025.

The Company’s right-of-use assets and lease liabilities and other disclosures at June 30, 2026 and at December 31, 2025, are as follows:


	Operating Lease		Finance Lease
Right-of-use assets obtained in exchange for new lease liabilities	$	168,833	$	130,294
Weighted-average remaining lease term		1.4 years		3.5 years
Weighted average discount rate		7.9%		9.9%


	Operating Lease				Finance Lease
	June 30, 2026		Dec. 31, 2025		June 30, 2026		Dec. 31, 2025
Right-of-use assets	$	160,447	$	160,447	$	130,294	$	130,294
Less: amortization		80,472		52,604		33,839		22,123
Lease assets, net	$	79,975	$	107,843	$	96,455	$	108,171

Lease liabilities
Lease liabilities, current	$	64,743	$	63,950	$	26,784	$	26,784
Lease liabilities, long-term		17,267		45,918		49,671		61,387
Total lease obligation	$	82,010	$	109,868	$	76,455	$	88,171

Future payments of lease liabilities at June 30, 2026 are as follows:


Year Ending December 31,	Operating Lease			Finance Lease
2026	$	32,054		$	13,392
2027		54,482			26,784
2028		–			26,784
2029		–			26,784
Thereafter		–			–
	$	86,536		$	93,744
Less interest		(4,526	)		(17,289	)
Total	$	82,010		$	76,455