NOTE 4 – RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

Operating Leases

Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases are not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term.

The Company leases 823 square feet of office space located at 14497 North Dale Mabry Highway, Suite 209-N, Tampa, Florida 33618. The Company entered into an amended lease agreement commencing on July 15, 2025 through July 31, 2028 with base month rents of $1,646 from August 1, 2025 to July 31, 2026, $1,712 from August 1, 2026 to July 31, 2027, and $1,780 from August 1, 2027 to July 31, 2028. Under the terms of the amended lease there may be additional fees charged above the base monthly rental fee. During the six months ended June 30, 2026 and 2025, the Company recorded $11,855 and $10,590 as operating lease expense, respectively, which is included in rent expense on the unaudited condensed consolidated statements of operations.

On August 1, 2023, upon renewal of the lease, the Company recorded a right-of-use asset and lease liability of $37,502.

Right-of-use assets at June 30, 2026 and December 31, 2025 are summarized below:

Schedule of right-of-use assets

Amortization on the right -of -use asset is included in rent expense on the unaudited condensed consolidated statements of operations.

Operating lease liabilities are summarized below:

Schedule of operating lease liabilities 

Maturity of lease liabilities are as follows:

Schedule of Maturity of lease liabilities 

Finance Leases

Commencing during the year ended December 31, 2023, the Company entered into the following leases:

Finance right of use assets are summarized below:

Schedule of Finance Right-Of-Use Assets 

Finance lease liabilities are summarized below:

Schedule of Finance Lease Liabilities 

The vessel was damaged and the lessee agreed to end the lease as of December 31, 2025 with no further payments owed by the Company based on the insurance settlement terms.

Maturity of lease liabilities are as follows:

Schedule of Future minimum lease payments 

Expenses incurred with respect to the Company’s finance leases during the six months ended June 30, 2026 and 2025 which are included in general and administrative expenses on the unaudited condensed consolidated statements of operations are set forth below.

Schedule of Expenses with respect to Finance Leases 

Expenses incurred with respect to the Company’s finance leases during the three months ended June 30, 2026 and 2025 which are included in general and administrative expenses on the unaudited condensed consolidated statements of operations are set forth below.

The weighted average remaining lease term and the weighted average discount rate on the finance leases at June 30, 2026 and December 31, 2025 are set forth below.

Schedule of Weighted Average Remaining Lease Team and Average Discount on Finance Leases