Note 3 - Leases

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 3 – Leases

Under FASB’s ASU 2016-02, “Leases,” which, together with its related clarifying ASUs, provided revised guidance for lease accounting and related disclosure requirements and established a right-to-use (ROU) model that requires lessees to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The ASU also requires disclosures to allow financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative requirements, providing additional information about the amounts recorded in the financial statements.

The following table includes the ROU assets and operating lease liabilities as of March 31, 2025, and December 31, 2024. Short-term operating lease liabilities are included in current liabilities in other accrued liabilities. Long-term operating lease liabilities are included in noncurrent liabilities in other accrued liabilities.

Right of Use Asset	Balance March 31, 2025		Balance December 31, 2024
Operating Lease Right-Of-Use Assets	$	1,183,166	$	1,090,638

Operating Lease Liabilities	Balance March 31, 2025		Balance December 31, 2024
Short-Term Operating Lease Liabilities	$	207,755	$	191,902
Long-Term Operating Lease Liabilities		999,580		922,776
Total	$	1,207,335	$	1,114,678

Maturity analysis under these lease agreements is as follows:

Maturity Analysis	Balance March 31, 2025
2025 (remaining)	$	211,332
2026		240,136
2027		191,911
2028		194,716
2029		190,681
Thereafter		547,552
Total		1,576,328
Less Imputed Interest		(368,993	)
Present Value of Operating Leases	$	1,207,335

The following summarizes other information related to leases for the quarter ending March 31, 2025, as follows:

Weighted Average Remaining Lease Term (Years)	7.75
Weighted Average Discount Rate	6.52	%

We amortize our leases over the shorter of the term of the lease or the useful life of the asset. Lease expenses for the three months ending March 31, 2025, and 2024 were $77,911 and $105,608, respectively.