16. LEASES

SWOL Lease

In March 2025, SWOL Holdings Inc., a wholly-owned subsidiary of the Company, entered into a commercial lease agreement with CapMinds, a related party, for office space located at 6538 Collins Ave, Suite 344, Miami Beach, Florida, which also serves as the Company’s principal executive offices. CapMinds is an entity affiliated with Alexandra Hoffman, CEO of SWOL Holdings. See Note 14 - Related Party Transactions. The lease commenced on March 15, 2025 and expires on March 31, 2030, with a term of approximately five years. Base rent is $1,200 per month, with all utilities and service charges borne by the landlord. The lease does not contain renewal options at a predetermined rate, variable lease payments, or residual value guarantees.

During the six months ended June 30, 2026, the commercial lease agreement for office spaced located at 6800 Indian Creek Dr. Suite 1E Miami Beach, Florida 33141 was terminated and determined to be ineffective. Accordingly, the Company derecognized the related right-of-use asset of $51,651 and operating lease liability of $51,651 during the six months ended June 30, 2026, resulting in no net impact on the condensed consolidated statements of operations. Following the termination, the Company has no remaining obligations under the lease agreement.