RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

9 Months Ended

Sep. 30, 2025

Leases [Abstract]

RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

NOTE 4 – RIGHT-OF-USE ASSETS AND OPERATING AND FINANCE LEASE LIABILITIES

Operating Leases

Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases are not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term.

The Company leases 823 square feet of office space located at 14497 North Dale Mabry Highway, Suite 209-N, Tampa, Florida 33618. The Company entered into an amended lease agreement commencing on July 15, 2025 through July 31, 2028 with base month rents of $1,646 from August 1, 2025 to July 31, 2026, $1,712 from August 1, 2026 to July 31, 2027, and $1,780 from August 1, 2028 to July 31, 2028. Under the terms of the amended lease there may be additional fees charged above the base monthly rental fee. During the nine months ended September 30, 2025 and 2024, the Company recorded $15,400 and $10,308 as operating lease expense, respectively, which is included in rent expense on the unaudited condensed consolidated statements of operations. During the three months ended September 30, 2025 and 2024, the Company recorded $5,144 and $5,154 as operating lease expense, respectively, which is included in rent expense on the unaudited condensed consolidated statements of operations.

On August 1, 2025, upon renewal of the lease, the Company recorded a right-of-use asset and lease liability of $53,382.

Right-of-use assets at September 30, 2025 and December 31, 2024 are summarized below: 

	September 30, 2025			December 31, 2024
Office lease	$	53,382		$	37,502
Less accumulated amortization		(2,573	)		(25,762	)
Right of use assets, net	$	50,809		$	11,740

Amortization on the right -of -use asset is included in rent expense on the unaudited condensed consolidated statements of operations.

Operating Lease liabilities are summarized below:

	September 30, 2025			December 31, 2024
Office lease	$	50,943		$	11,976
Less: current portion		(15,643	)		(11,976	)
Long term portion	$	35,300		$	-

Maturity of lease liabilities are as follows:

Year ended December 31, 2025	$	4,938
Year ended December 31, 2026		20,083
Year ended December 31, 2027		20,884
Year ended December 31, 2028		12,462
Total future minimum lease payments		58,367
Less: Present value discount		(7,424	)
Lease liability	$	50,943

Finance Leases

Commencing during the year ended December 31, 2023, the Company entered into the following leases:

○	Vehicle lease - monthly lease payments of $1,167 for 60 months amortized over 5 years at 12%
○	Vessel lease - monthly lease payments of $1,557 for 60 months amortized over 5 years at 12%
○	Sonar lease - monthly lease payments of $422 for 60 months amortized over 5 years at 12%

Finance right of use assets are summarized below:

	September 30, 2025			December 31, 2024
Vehicle lease	$	53,100		$	53,100
Vessel lease		70,849			70,849
Sonar lease		18,987			18,987
		142,936			142,936
Less accumulated amortization		(76,231	)		(55,096	)
Finance right of use asset	$	66,705		$	87,840

Finance lease liabilities are summarized below:

	September 30, 2025			December 31, 2024
Vehicle lease	$	28,378		$	35,944
Vessel lease		37,863			47,957
Sonar lease		11,210			13,868
		77,451			97,769
Less: current portion		(28,537	)		(26,304	)
Long term portion	$	48,914		$	71,465

Maturity of lease liabilities are as follows:

Year Ended December 31, 2025	$	9,440
Year Ended December 31, 2026		37,758
Year Ended December 31, 2027		37,758
Thereafter		4,414
Total future minimum lease payments		89,370
Less imputed interest		(11,919	)
PV of payments	$	77,451

Expenses incurred with respect to the Company’s finance leases during the nine months ended September 30, 2025 and 2024 which are included in general and administrative expenses on the unaudited condensed consolidated statements of operations are set forth below:

	September 30, 2025		September 30, 2024
Finance lease amortization	$	21,136	$	21,136
Finance lease interest		8,001		10,287
Total finance lease expense	$	29,137	$	31,423

Expenses incurred with respect to the Company’s finance leases during the three months ended September 30, 2025 and 2024 which are included in general and administrative expenses on the unaudited condensed consolidated statements of operations are set forth below.

	September 30, 2025		September 30, 2024
Finance lease amortization	$	7,045	$	7,045
Finance lease interest		2,464		3,431
Total finance lease expense	$	9,509	$	10,476

The weighted average remaining lease term and the weighted average discount rate on the finance leases at September 30, 2025 and December 31, 2024 are set forth below:

	September 30,	December 31,
	2025	2024
Weighted average remaining lease term	2.36 years	3.11 years
Weighted average discount rate	12%	12%