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

3 Months Ended

Mar. 31, 2026

Right-of-use Assets And Operating And Finance Lease Liabilities

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, 2027 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 three months ended March 31, 2026 and 2025, the Company recorded $5,138 and $5,268 as operating lease expense, respectively, which is included in rent expense on the unaudited condensed statements of operations.

Right-of-use assets at March 31, 2026 and December 31, 2025 are summarized below:

	March 31, 2026			December 31, 2025
Office lease	$	53,382		$	53,382
Less accumulated amortization		(10,541	)		(6,510	)
Right of use assets, net	$	42,841		$	46,872

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:

	March 31, 2026			December 31, 2025
Office lease	$	43,375		$	47,206
Less: current portion		(16,848	)		(16,238	)
Long term portion	$	26,527		$	30,968

Maturity of operating lease liabilities are as follows:

Year Ended December 31, 2026	$	15,145
Year Ended December 31, 2027		20,884
Year Ended December 31, 2028		12,462
Total future minimum lease payments		48,491
Less imputed interest		(5,116	)
PV of payments	$	43,375

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:

	March 31, 2026			December 31, 2025
Vehicle lease	$	53,100		$	53,100
Vessel lease		-			70,849
Sonar lease		18,987			18,987
		72,087			142,936
Less accumulated amortization		(45,025	)		(83,277	)
Finance right of use asset	$	27,062		$	59,659

Finance lease liabilities are summarized below:

	March 31, 2025			December 31, 2025
Vehicle lease	$	22,944		$	25,702
Vessel lease		-			34,291
Sonar lease		9,302			10,270
		32,246			70,263
Less: current portion		(16,068	)		(29,640	)
Long term portion	$	16,178		$	40,623

The vessel was damaged and the lessee agreed to end the lease as of December 31, 2025 with no further payments owed by the Company based on the insurance settlement terms.

Maturity of lease liabilities are as follows:

Year Ended December 31, 2026		14,305
Year Ended December 31, 2027		19,073
Year Ended December 31, 2028		2,856
Total future minimum lease payments		36,234
Less imputed interest		(3,988	)
PV of payments	$	32,246

Expenses incurred with respect to the Company’s finance leases during the three months ended March 31, 2026 and 2025 which are included in general and administrative expenses on the unaudited condensed consolidated statements of operations are set forth below.

	March 31, 2026		March 31, 2025
Finance lease amortization	$	3,561	$	7,045
Finance lease interest		1,042		2,868
Total finance lease expense	$	4,603	$	9,913

The weighted average remaining lease term and the weighted average discount rate on the finance leases at March 31, 2026 and December 31, 2025 are set forth below.

	March 31,			December 31,
	2026			2025
Weighted average remaining lease term		1.87 years			2.11 years
Weighted average discount rate		12	%		12	%