NOTE 10 – LEASES

The Company maintains an operating lease for its office space and operating facility. The lease has a remaining term of 80 months. The Company determines if an arrangement is a lease at inception. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. The Company used a weighted average incremental borrowing rate of 9.11% Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. During the three months ended June 30, 2026, the Company renewed a facility lease for its Two Trees business for an additional three years and recognized an initial right of use asset and liability of $405,866.

As of June 30, 2026, the amount of right-of-use assets and lease liabilities was $917,944 and $948,107, respectively. As of December 31, 2025, the amount of right-of-use assets and lease liabilities was $628,125 and $661,109, respectively. Aggregate lease expense for the three and six months ended June 30, 2026 was $80,681 and $159,153

, respectively. Aggregate lease expense for the three and six months ended June 30, 2025 was $86,404 and $166,129, respectively.

The following table provides the maturities of lease liabilities at June 30, 2026:

 SCHEDULE OF MATURITIES LEASE LIABILITIES