v3.26.1
Leases
6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases

Note 5. Leases

 

The following provides balance sheet information related to leases as of June 30, 2026 and December 31, 2025:

   

   June 30,   December 31, 
   2026   2025 
Assets          
Operating lease, right-of-use asset, net  $38,242   $75,595 
Liabilities          
Current portion of operating lease liabilities  $39,715   $78,539 

 

At June 30, 2026, the future estimated minimum lease payments under non-cancelable operating leases are as follows:

   

      
2026 (remaining six months)  $40,500 
Less amount representing interest   (785)
Present value of future minimum lease payments   39,715 
Less current portion of operating lease liabilities   (39,715)
Operating lease liabilities, net of current portion  $- 

 

At June 30, 2026 and December 31, 2025, the Company has a non-cancelable operating lease for office space in Atlanta, Georgia that requires monthly payments of $6,750 through December 31, 2026. The lease is subject to automatic renewal on a month-to-month basis unless the Company provides three-months written notice to the landlord. The exercise of lease renewal options is at the Company’s sole discretion and is assessed as to whether to include any renewals in the lease term at inception.

 

The following table provides a reconciliation for the Company’s right of use assets and lease liabilities:

  

   Operating   Operating 
   Right-of- Use   Lease 
   Assets   Liabilities 
Balance at December 31, 2025  $75,595   $78,539 
Amortizations and reductions   (37,353)   (38,824)
Balance at June 30, 2026  $38,242   $39,715 

 

 

Other supplemental information related to operating leases is as follows:

  

   2026   2025 
   As of June 30, 
   2026   2025 
Weighted average remaining term of operating leases (in years)   0.50    0.89 
Weighted average discount rate of operating leases   6.75%   9.50%

 

The Company also leases office space in Dallas, Texas under two leases. One lease is month-to-month, while the other has a contractual term of one year and ends November 30, 2026. The Company also leases space for material storage and handling under a one-year lease that continues through September 2026. The storage lease is cancelable with 45-days’ written notice. Leases with contractual periods of twelve months or less are accounted for under the short-term lease measurement and recognition exemption allowed for by ASC 842. Rent expense is recorded as incurred for these leases.

 

The components of lease expense were approximately as follows for the three and six months ended June 30, 2026 and 2025:

  

   2026   2025   2026   2025 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Operating lease cost  $20,000   $53,000   $39,000   $106,000 
Short-term lease cost   22,400    4,800    44,700    9,600 
Lease expense  $42,400   $57,800   $83,700   $115,600 

 

During the six months ended June 30, 2026 and 2025, cash used in operating activities associated with operating leases was approximately $40,500 and $108,000, respectively.