Leases

6 Months Ended

Jun. 30, 2026

Note 14 - Leases

In June 2024, the Company entered into a non-cancelable operating lease agreement for a facility in Bethesda, Maryland. This lease commenced on July 1, 2024, has a term of 63 months, and has an initial base rent of approximately $7,000 per month that increases annually by three percent. Under the terms of this lease, the Company is also responsible for their proportionate share of expenses associated with the facility and its premises.

In January 2025, the Company entered into a non-cancelable operating lease agreement with an unrelated third-party for a 16,000 square foot facility in Puerto Rico. This lease commenced on February 1, 2025 on a month-to-month basis and became a long-term lease with an initial term of 5 years on June 1, 2025. The initial base rent is $7.00 per square foot, or $9,333 per month, for the first two years, increasing to $7.50 per square foot for the third year and increases by 3% annually thereafter. Under the terms of this lease, the Company is also responsible for their own utilities and a proportionate share of the operating expenses of the premises, not to exceed $3.25 per square foot.

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	51,298	$	31,468	$	102,596	$	53,021
Other short-term lease cost		6,180		30,667		29,798		63,668
Total lease cost	$	57,478	$	62,135	$	132,394	$	116,689

The following table summarizes the operating lease asset and liabilities recorded as of June 30, 2026 and December 31, 2025:

	June 30, 2026			December 31, 2025
Operating lease right-of-use asset, net	$	630,958		$	701,878
Short-term operating lease liabilities		148,808			139,963
Long-term operating lease liabilities		500,910			577,656
Total operating lease liabilities	$	649,718		$	717,619

Weighted average operating lease term		3.66 years			4.16 years
Weighted average operating lease discount rate		9.51	%		9.53	%

The following table summarizes future minimum lease commitments as of June 30, 2026:

Year ending December 31,	Operating Leases
2026 (remaining 6 months)		100,885
2027		207,783
2028	$	215,950
2029		197,905
2030		42,436
Thereafter		-
Total lease payments	$	764,958
Less: imputed interest		(115,240	)
Present value of lease liabilities	$	649,718