v3.26.3
Leases
6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES

NOTE 8 — LEASES

 

The Company has several operating leases for manufacturing facilities and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

The Company adopts Topic 842 using a modified retrospective transition method. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

 

Total lease expense amounted to $113,144 for the six months ended June 30, 2026, which included $6,531 interest and $106,613 amortization expenses of ROU assets. Total lease expense amounted to $76,801 for the six months ended June 30, 2025, which included $3,767 interest and $73,034 amortization expenses of ROU assets. Total cash paid for operating leases amounted to $116,696 and $91,691 for the six months ended June 30, 2026 and 2025, respectively.

 

Supplemental balance sheet information related to operating leases was as follows:

 

    June 30,
2026
    December 31,
2025
 
             
Right-of-use assets, net   $ 563,209     $ 159,685  
Operating lease liabilities – current   $ 205,792     $ 142,076  
Operating lease liabilities – non-current     361,763       22,582  
Total operating lease liabilities   $ 567,555     $ 164,658  

 

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2026:

 

Remaining lease term and discount rate:      
Weighted average remaining lease term (years)     3.67  
Weighted average discount rate     3.4 %

 

The following is a schedule of maturities of lease liabilities as of June 30, 2026:

 

Six Months ending June 30      
       
2026   $ 106,483  
2027     162,244  
2028     99,766  
2029     80,497  
2030 and thereafter     119,167  
Total future minimum lease payments   $ 568,157  
Less: imputed interest     602  
Total   $ 567,555