Commitments and Contingencies |
6 Months Ended | |||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||
| Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||
| Commitments and Contingencies | 5. Commitments and Contingencies
Legal Proceedings
From time to time, the Company is party to various litigation matters incidental to the conduct of its business. The Company is not presently party to any legal proceedings the resolution of which it believes would have a material adverse effect on its business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels.
Leases
The Company entered into a five-year lease for its corporate headquarters in Stuart, Florida, commencing in November of 2022. The Company’s real estate lease also includes executory costs such as common area maintenance (non-lease component) and real estate taxes (not considered a component of the Company’s lease). As a practical expedient permitted under ASC 842, the Company has elected to account for the lease and non-lease components as a single lease component. For the three and six months ended June 30, 2026 and 2025, the rent-related expenses for this lease were $20,812 and $41,624, respectively. The Company had short-term leases as of June 30, 2026, and one short-term lease as of December 31, 2025.
The Company’s office lease is classified as an operating lease. At the inception date of the office lease, the Company recorded a right-of-use asset of $330,554 in operating lease right-of-use asset, as well as an operating lease liability of $324,021. This lease liability represented the net present value of future lease payments for the lease utilizing a discount rate of 10%, which corresponded to the Company’s incremental borrowing rate.
During the three and six months ended June 30, 2026, the Company made cash payments of $21,417 and $42,834 for amounts included in the measurement of lease liabilities, respectively.
The following table reconciles the undiscounted lease liabilities to the total lease liabilities recognized on the Consolidated Balance Sheet as of June 30, 2026:
The remaining lease term was 1.3 years and 1.8 years as of June 30, 2026 and December 31, 2025, respectively.
The discount rate used to determine the operating lease liability was 10% both as of June 30, 2026 and December 31, 2025. |