Quarterly report [Sections 13 or 15(d)]

LEASES

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LEASES
6 Months Ended
Jun. 30, 2025
Leases  
LEASES

NOTE 6 – LEASES

 

The Company has entered into operating leases primarily for real estate. These leases have terms which range from 1 to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to month-to-month and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Right of use assets” on the Company’s June 30, 2025, Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Current portion of lease liabilities” and “Lease liabilities net of current portion” on the Company’s June 30, 2025, Consolidated Balance Sheets. As of June 30, 2025, total right-of-use assets and operating lease liabilities were approximately $114,600 and $132,500, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the six months ended June 30, 2025, the Company recognized approximately $11,600 in operating lease costs for right-of-use assets. As of June 30, 2025, the Company is in default of the office lease, and is not occupying the leased space.

 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

 

 

Information related to the Company’s right-of-use assets and related lease liabilities were as follows (unaudited):

 

    Six months ended June 30,  
    2025     2024  
             
Cash paid for operating lease liabilities   $ 20,200     $ 22,300  
Weighted-average remaining lease term     23 months       26 months  
Weighted-average discount rate     10 %     10 %

 

 

Maturities of lease liabilities as of June 30, 2025 were as follows:          
2025     $ 78,300  
2026       64,000  
2027       -  
2028       -  
2029       -  
Thereafter       -  
Total operating lease       142,300  
Less imputed interest       (9,800 )
Total lease liabilities       132,500