v3.26.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 15 - Commitments and Contingencies

 

The Company entered into a new office lease effective September 1, 2025. The primary term of the lease is three years and two months with a renewal option for an additional two years. Minimum annual lease payments for the primary term and renewal are as follows:

 

Primary Period  Amount   Amount During Renewal Period  Amount 
September 1 to August 31, 2026  $262,354   November 1 to October 31, 2029  $278,988 
September 1 to August 31, 2027  $267,601   November 1 to October 31, 2030  $284,568 
September 1 to August 31, 2028  $273,518         
September 1 to October 31, 2028  $46,498         

 

Under the new standard for lease reporting, the Company recorded a Right of Use Asset (“ROU”) and an offsetting lease liability of $753,564 representing the present value of the future payments under the lease calculated using a 7.5% discount rate. The ROU and lease liability are amortized over the three-year life of the lease. The unamortized balances at September 30, 2026 and December 31, 2025 were ROU asset of $515,450 and $682,286, current portion of the lease liability of $236,995 and $220,206 and non-current portion of lease liability of $284,586 and $464,100, respectively.

 

Additionally, the Company recognized accreted interest expense of $34,476 and $18,194 and rent expense of $161,697 and $71,278 for the lease during the nine months ended September 30, 2026 and year ended December 31, 2025 respectively.

 

Legal Proceedings

 

The Company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position, results of operations or liquidity.