5.     LEASE

The Company entered into an operating lease for office space which became effective in June 2020. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of September 30, 2026, the remaining lease term was 3.6 years and the discount rate used was 6%.

The Company entered into an operating lease for additional office space which became effective in September 2025. The lease term is 7.4 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of September 30, 2026, the remaining lease term was 6.3 years and the discount rate used was 8%.

Operating lease cost included in selling, general and administrative expenses was $422,129 and $1,182,582 for the three and nine months ended September 30, 2026, respectively, including common area maintenance expenses of $83,163 and $231,028, respectively. Operating lease cost included in selling, general and administrative expenses was $267,053 and $645,904 for the three and nine months ended September 30, 2025, respectively, including common area maintenance expenses of $72,195 and $142,859, respectively. Cash paid for operating leases was $838,840 and $502,835 for the nine months ended September 30, 2026 and 2025, respectively.

Additional information related to the Company’s operating leases was as follows:

The following is the lease maturity analysis of our operating leases as of September 30, 2026: