Note
10 — Leases
During
2024, the Company entered into finance lease agreements for equipment utilized in its manufacturing facility.
The
components of operating and finance lease costs are as follows for the three and nine months ended September 30 :
Schedule of Operating Lease and Finance Lease Costs
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
Three Months Ended September 30, | | |
Nine Months Ended September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Operating lease cost | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
| Finance Lease Cost: | |
| | | |
| | | |
| | | |
| | |
| Amortization of assets | |
| 82,157 | | |
| 82,157 | | |
| 246,471 | | |
| 246,471 | |
| Interest on liabilities | |
| 31,278 | | |
| 38,258 | | |
| 99,659 | | |
| 120,095 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total lease cost | |
$ | 113,435 | | |
$ | 120,415 | | |
$ | 346,130 | | |
$ | 366,566 | |
Supplemental
cash flow information related to leases is as follows for the three and nine months ended September 30:
Schedule of Cash Flow Information Related To Leases
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
Three Months Ended September 30, | | |
Nine Months Ended September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Cash paid for amounts included in measurement of lease obligations: | |
| | | |
| | | |
| | | |
| | |
| Operating cash flows from operating leases | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
| Operating cash flows from finance leases | |
| 31,278 | | |
| 38,258 | | |
| 99,659 | | |
| 120,095 | |
| Financing cash flows from finance leases | |
$ | 97,969 | | |
$ | 88,576 | | |
$ | 288,081 | | |
$ | 207,121 | |
The
following table summarizes weighted average remaining lease term and discount rates as of September 30, 2026, and December 31, 2025:
Schedule of Weighted Average Remaining Lease Term
| | |
30-Sep-26 | | |
31-Dec-25 | |
| Weighted average remaining lease term (years) | |
| | | |
| | |
| Operating leases | |
| n/a | | |
| n/a | |
| Finance leases | |
| 3.25 | | |
| 4.00 | |
| Weighted average discount rate | |
| | | |
| | |
| Operating leases | |
| n/a | | |
| n/a | |
| Finance leases | |
| 8.4 | % | |
| 8.4 | % |
Future
maturities of our lease liabilities are as follows as of September 30, 2026:
Schedule of Future Maturities of Lease Liabilities
| | |
| | |
| 2026 remainder of year | |
$ | 128,381 | |
| 2027 | |
| 513,525 | |
| 2028 | |
| 513,525 | |
| 2029 | |
| 513,524 | |
| Thereafter | |
| - | |
| Total Undiscounted Lease Obligations | |
| 1,668,955 | |
| Less: Imputed Interest | |
| (187,926 | ) |
| | |
| | |
| Present Value of Lease Obligations | |
$ | 1,481,029 | |
SYNTEC
OPTICS HOLDINGS, INC.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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