9. OPERATING LEASE

In January 2026, the Company entered into an operating lease agreement related to office space rental agreement in California. The Company also leases office space in Kentucky under a short-term lease ending in December 2026 in exchange for lease payments of approximately $2,000.

To determine the present value of minimum future lease payments for the operating lease at the inception of the lease, the Company was required to estimate a rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”).

The Company determined the appropriate IBR by estimating the rate it would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a term comparable to the lease, using its recent secured borrowing costs as a starting point and adjusting for current risk-free Treasury yields and the specific lease term.

Individual components of the total lease cost incurred by the Company for the six months ended June 30, 2026 were approximately as follows:

 SCHEDULE OF OPERATING LEASE EXPENSE

Minimum rental payments under operating lease are recognized on a straight-line basis over the term of the lease.

The Company’s amount of future minimum lease payments under operating lease are as follows as of June 30, 2026:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

The weighted-average remaining lease term and weighted-average discount rate are as follows:

 SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERM