NOTE 6 – COMMITMENTS AND CONTINGENCIES

The Company maintains office space in Coral Gables, Florida. In November 2020, the Company signed a lease for office space in Coral Gables, Florida, for a term of sixty-two months with the right to extend the term of the lease for two additional, successive terms of two years upon the same terms and conditions as the initial term. In April 2025, the Company signed a second amendment to lease for a term of 24 months.

The Company also maintains an office in Lansing, Michigan for J.W. Korth.

The net present value of future lease payments pursuant to the operating lease agreements are included in the ROU Leased Asset and the Lease Liability accounts on the unaudited condensed consolidated statements of financial condition. The ROU Leased Asset represents the right to use an underlying asset for the remaining lease term. The Lease Liability represents the obligation to make lease payments pursuant to the terms of the lease agreements.

Rental expense for the six months ended June 30, 2026, was $165,236 compared to $156,510 for the six months ended June 30, 2025, this includes additional expenses for common area, direct operating expense, utilities, parking, and taxes.

As of June 30, 2026, the net present value of the future lease liabilities, using the weighted-average discount rate of 4.24%, which is commensurate with the Company’s secured borrowing rate, over the weighted average remaining life of 1.6 years was $451,093.

The following is a schedule of the maturities of future lease payments over the remaining life of the operating leases, reconciled to the net present value as of June 30, 2026:

The Company is subject to various legal proceedings, claims, and regulatory matters. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that any currently pending matters, individually or in the aggregate, will have a material adverse effect on its consolidated financial statements.