Leases

3 Months Ended

Mar. 31, 2025

Leases

Leases

Note 10. Leases

The Company has a non-cancellable operating lease for facility space, which qualifies for capitalization under FASB ASC 842, Leases. The lease has a remaining term of approximately 24 months and includes an option to extend for up to ten additional years; however, the extension option is not recognized as part of the right-of-use asset as it is not reasonably certain to be exercised. The Company has elected not to capitalize leases with terms of one year or less. As of March 31, 2025, and December 31, 2024, the net right-of-use asset recorded under the operating lease was $664,440 and $703,524, respectively, and the corresponding lease liability was $834,858 and $874,834, respectively.

The Company analyzes contracts above certain thresholds to identify leases and lease components. Lease and non-lease components are not separated for facility space leases. The Company uses its contractual borrowing rate to determine lease discount rates when an implicit rate is not available. Total lease cost for the three months ended March 31, 2025 and March 31, 2024, included in Unaudited Condensed Consolidated Statements of Operations, is detailed in the table below:

	Three months ended March 31, 2025		Three months ended March 31, 2024
Short-term lease cost	$	61,006	$	69,437
Total Lease Cost	$	61,006	$	69,437

		March 31, 2025			December 31, 2024
ROU asset that are related to lease properties are presented as follows:
Beginning balance	$	703,524		$	859,861
Additions to right-of-use asset		-			-
Amortization charge for the year		(39,084	)		(156,337	)
Lease modifications		-			-
Ending balance	$	664,440		$	703,524
Further information related to leases is as follows:
Weighted-average remaining lease term		2.12 Years			2.42 Years
Weighted-average discount rate		6.87	%		6.87	%

Future minimum lease payments as of March 31, 2025 and December 31, 2024 are as follows:

Year
2025	$	163,534	$	217,925
2026		222,275		222,275
2027		226,705		226,705
2028		231,216		231,216
2029		117,709		117,709
Total future minimum lease payments	$	961,439	$	1,015,830
Less: Imputed interest		126,581		140,996
Operating lease liabilities	$	834,858	$	874,834
Less: Current portion		165,842		161,952
Non-current portion of lease liability	$	669,016	$	712,882