Note 8 - Leases |
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| Leases of Lessee and Commitments Disclosure [Text Block] |
8. LEASES
The Company determines if an arrangement is a lease or contains a lease at inception. The Company leases some office equipment under finance leases. We also lease equipment related to our horse racing operations under operating leases. For lease accounting purposes, we do not separate lease and nonlease components, nor do we record operating or finance lease assets and liabilities for short-term leases.
As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. We recognize expense for operating leases on a straight-line basis over the lease term. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or any restrictive covenants.
Lease costs related to operating leases were $0 and $16,952 for the nine months ended September 30, 2026 and 2025. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or liability was $373,209 and $378,187 for the nine months ended September 30, 2026 and 2025, respectively.
Lease costs included in depreciation and amortization related to our finance leases were $26,610 and $24,449 for the nine months ended September 30, 2026 and 2025. Interest expense related to our finance leases was immaterial.
The following table shows the classification of the right-of-use assets on our consolidated balance sheets:
1 – Finance lease assets are net of accumulated amortization of $90,339 and $63,729 as of September 30, 2026 and December 31, 2025, respectively.
The following table shows the lease terms and discount rates related to our leases:
The maturities of finance leases as of September 30, 2026 are as follows:
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