Note 8 — LEASES

Lease payments for the company’s operating lease was $36,700 and $24,750, for the year ended December 31, 2025 and 2024. Lease expense for the company’s operating lease was $38,373 and $31,977, for the year ended December 31, 2025 and 2024. As of December 31, 2025, the Company’s operating lease was $3,175 per month with a remaining term of 39 months and a discount rate of 4.69%. Lease expense is included in general and administrative costs in the accompanying consolidated statements of operations. This lease includes a renewal option at the election of the Company to renew or extend the lease. This optional period has not been considered in the determination of the ROU assets or lease liability associated with this lease as the Company did not consider it reasonably certain it would exercise the option.

At December 31, 2025, approximate future minimum rental payments required under the lease agreement is as follows:

 

 

Operating
Lease

 

2026

 

 

39,370

 

2027

 

 

40,945

 

2028

 

 

42,583

 

2029

 

 

10,714

 

Total undiscounted lease payments

 

 

133,612

 

Less: effects of discounting

 

 

(9,611

)

Operating Lease Liability

 

$

124,001

 

 

 

 

Classified as:

 

 

 

Operating lease liability, current

 

$

34,437

 

Operating lease liability, non-current

 

$

89,564

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 25, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.