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12 Months Ended

Dec. 31, 2024

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NOTE 13. - LEASE

Beginning on June 1, 2022, the Company leases its headquarters facility under an operating lease agreement that expires on May 31, 2029.

On January 9, 2024, the Company renegotiated the lease agreement.  The lease reduced the rentable square footage from 7,194 square feet to 3,400 square feet.

Rent due is $5,052 per month from February 1, 2024 to June 30, 2024, The subsequent annual lease amount is $61,778, and increases by 2.0% annually thereafter.

Upon entering the lease amendment, the Company adjusted the right-of-use asset from $555,149 to $280,520 and the lease liability from $565,828 to $275,850 in January 2024.  A non-operating gain of $15,350 was recorded for the partial termination of the lease.

Supplemental balance sheet information related to the lease on December 31, 2024 and 2023 is as follows:

	December 31, 2024			December 31, 2023
Right of use asset - lease, net	$	240,128		$	562,296
Operating lease liability - short-term	$	44,977		$	84,869
Operating lease liability - long-term		193,642			487,691
Total operating lease liability	$	238,619		$	572,560
Discount rate - operating lease		8	%		7	%

Maturities of operating lease liabilities as of December 31, 2024 were as follows:

2025	$	62,452
2026		63,628
2027		64,838
2028		66,062
2029		27,739
Total lease payments	$	284,719
Less: imputed interest		(46,100	)
Total	$	238,619