NOTE 5 - RIGHT OF USE ASSETS AND LEASE LIABILITIES |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| NOTE 5 - RIGHT OF USE ASSETS AND LEASE LIABILITIES | NOTE 5 – RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
In February 2022, the Company entered into a lease agreement for its warehouse facilities located at 7375 Commercial Way Suite 125, Henderson, Nevada 89011 with a term of 35 month 25 days that expired on January 31, 2025. Prior to February 4, 2022 the company was leasing a warehouse facility on a month-to-month lease. The average monthly base rent for the first 12 months is approximately $5,333. For the next 24 months of the lease, the average monthly base rent will be approximately $5,694. As part of the agreement the Company will be responsible to share any property operating expenses estimated as $1,017 per month. Pursuant to ASC 842, the estimated operating expenses was included with the base rent and was included in the calculations of the right of use assets. The Company recorded operating lease right-of-use of $175,765 and lease liabilities for operating lease of $175,765.
In February 2025, the Company entered into a lease agreement for its warehouse facilities located at 7375 Commercial Way Suite 125, Henderson, Nevada 89011 with a term of 36 month and will expire in 2028. The average monthly base rent for the first 12 months is approximately $6,677. For the next 12 months of the lease, the average monthly base rent will be approximately $6,677. For the next 12 months of the lease, the average monthly base rent will be approximately $6,889. As part of the agreement the Company will be responsible to share any property operating expenses estimated as $1,389 per month. Pursuant to ASC 842, the estimated operating expenses was included with the base rent and was included in the calculations of the right of use assets. The Company recorded operating lease right-of-use of $204,437 and lease liabilities for operating lease of $204,437.
On October 1, 2025, the Company assumed Gummy USA’s lease agreement for its warehouse facility located at 4560 Northgate Ct., Sarasota, FL 34234. The term of the original lease was 60 months and expires on September 30, 2028. The last three years of the lease monthly base rent averages $11,564. The Company assumed operating lease right-of-use of $391,945 and lease liabilities for operating lease of $391,945 as of October 1, 2025.
Supplemental statements of operations information related to leases are as follows:
The following table summarizes the future undiscounted cash payments reconciled to the lease liability:
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