Note 3. Leases

The Company classifies the lease for its office space as an operating lease, and records a related right-of-use lease asset and lease liability accordingly. Pursuant to an amendment in May 2025, the lease has been extended through October 2028. The current rent is $11,625 per month through October 2026. It increases to $11,883 in November 2026 and to $12,142 in November 2027 where it remains until expiration.

The following represents a reconciliation of contractual lease cash flows to the right-of-use lease asset and liability recognized in the financial statements:

Operating

  ​ ​ ​

Lease

  ​ ​ ​

Contractual cash payments for the remaining lease term as of December 31, 2025

2026

$

140,017

2027

143,117

2028

121,416

Less implied interest

(46,406)

Total

$

358,144

Discount rate applied

 

8.47%

Remaining lease term (months) as of December 31, 2025

 

34

Lease expense for the year ended December 31, 2024:

 

  ​

Lease expense

$

136,022

Total

$

136,022

Lease expense for the year ended December 31, 2025:

Lease expense

$

139,781

Total

$

139,781

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 21, 2025
2023Mar 15, 2024
2022Mar 31, 2023
2021Mar 29, 2022

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.