OPERATING LEASE LIABILITIES

9 Months Ended

Sep. 30, 2025

Operating Lease Liabilities

OPERATING LEASE LIABILITIES

NOTE 6 OPERATING LEASE LIABILITIES

In April 2022, the Company entered into a 58-month lease related to certain office and showroom space pursuant to a sublease that expires in February 2027. The Company recognized a right-of-use asset and a liability of $1,428,764 pursuant to this lease.

In September 2022, the Company entered a 124-month lease related to its future headquarters offices and showrooms space. The Company recognized a right-of-use asset and a liability of $22,192,503 pursuant to such lease. In connection with the execution of lease, the Company was required to provide the landlord with a letter of credit in the amount of $2.7 million, which is secured by the same amount of cash. In January 2024, the Company entered a 35-month lease related to its Sacramento office. The Company recognized a right-of-use asset and a liability of $ 662,696 pursuant to such a lease.

The following table outlines the total lease cost for the Company’s operating leases as well as weighed average information for these leases as of September 30, 2025, and 2024 respectively:

	Nine-months ended September 30,
	2025			2024
Cash paid for operating lease liabilities	$	1,727,917		$	1,636,374
Rights-of-use obtained in exchange for new operating lease liabilities		-			662,696
Fixed rent payments		2,352,121			2,703,789
Lease - Depreciation expense	$	1,492,994		$	1,580,160
Weighted-average discount rate		6.48	%		6.48	%
Weighted-average remaining lease term (in months)		53			96

Minimum Lease obligation
Twelve months ended September 30, 2026	$	2,547,608
Twelve months ended September 30, 2027		2,361,250
Twelve months ended September 30, 2028		2,408,229
Twelve months ended September 30, 2029		2,667,734
Twelve months ended September 30, 2030, and thereafter		11,014,628
Total	$	20,999,449