NOTE 5 - RIGHT OF USE ASSETS AND LEASE LIABILITIES

9 Months Ended

Sep. 30, 2025

Notes

NOTE 5 - RIGHT OF USE ASSETS AND LEASE LIABILITIES

NOTE 5 – RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

In February 2022, the Company entered into a lease agreement for our warehouse facilities located at 7375 Commercial Way Suite 125, Henderson, Nevada 89011 with a term of 35 month 25 days that expired on January 31, 2025. Prior to February 4, 2022 the company was leasing a warehouse facility on a month-to-month lease. The average monthly base rent for the first 12 months is approximately $5,333. For the next 24 months of the lease, the average monthly base rent will be approximately $5,694. As part of the agreement the Company will be responsible to share any property operating expenses estimated as $1,017 per month. Pursuant to ASC 842, the estimated operating expenses was included with the base rent and was included in the calculations of the right of use assets. The Company recorded operating lease right-of-use of $175,765 and lease liabilities for operating lease of $175,765.

In February 2025, the Company entered into a lease agreement for our warehouse facilities located at 7375 Commercial Way Suite 125, Henderson, Nevada 89011 with a term of 36 month and will expire in 2028. The average monthly base rent for the first 12 months is approximately $6,677. For the next 12 months of the lease, the average monthly base rent will be approximately $6,677.  For the next 12 months of the lease, the average monthly base rent will be approximately $6,889.  As part of the agreement the Company will be responsible to share any property operating expenses estimated as $1,389 per month. Pursuant to ASC 842, the estimated operating expenses was included with the base rent and was included in the calculations of the right of use assets. The Company recorded operating lease right-of-use of $204,437 and lease liabilities for operating lease of $204,437.

Supplemental statements of operations information related to leases are as follows:

	Month Ended September 30, 2025
Lease Cost
Cash paid for amounts included in the measurement of lease liabilities for the nine quarter 2025	$	-
Weighted average remaining lease term – operating leases (in years)		3.0
Average discount rate – operating leases		12.0%
	September 30, 2025
Operating leases
Right-of-use assets, net of amortization of $38,350	$	166,086
Short-term operating lease liabilities	$	(62,516)
Long-term operating lease liabilities		(105,219)
Total operating lease liabilities	$	(167,734)

The following table summarizes the future undiscounted cash payments reconciled to the lease liability:

Year Ending	Operating Leases
2025 (remaining three months)	$19,422
2026	79,921
2027	82,456
2028	6,889
2029 and thereafter	-
Total lease payments	$188,688
Less: Imputed interest/present value discount	$(20,954)
Present value of lease liabilities	$167,734