Leases

12 Months Ended

Dec. 31, 2025

Leases

Leases

10. Leases

The Company’s leases consist principally of leases for office and warehouse space. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of the lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of the lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the Company’s current leases do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is estimated to discount the lease payments based on information available at the lease commencement.

These leases contain both lease and non-lease components, which the Company has elected to treat as a single lease component. The Company elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase obligations, of twelve months or less in its consolidated balance sheets for all classes of underlying assets. Lease costs for such short-term leases are expensed on a straight-line basis over the lease term.

All lease assets denominated in a foreign currency are measured using the exchange rate at the commencement of the lease. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of the consolidated balance sheet date.

Lease assets and liabilities

The following table presents the lease-related assets and liabilities and their respective classification on the consolidated balance sheets:

	December 31,
	2025		2024
ASSETS
Noncurrent
Operating lease right-of-use assets	$	2,930,441	$	3,232,786
Total operating lease right-of-use assets	$	2,930,441	$	3,232,786
LIABILITIES
Current
Current maturities of operating leases	$	661,047	$	634,947
Noncurrent
Noncurrent operating leases		2,297,161		2,630,812
Total lease liabilities	$	2,958,208	$	3,265,759
Weighted average remaining lease term:
Operating leases		4.2 years		5.0 years
Weighted average discount rate:
Operating leases		6.55%		6.56%

The components of lease costs were as follows:

	Year Ended December 31,
	2025		2024		2023
Operating lease costs	$	854,452	$	847,540	$	751,261
Short-term lease costs		349,498		361,176		217,640
Lease costs - discontinued operations		7,016		31,946		45,979
Total lease costs	$	1,210,966	$	1,240,662	$	1,014,880

Supplemental cash flow information related to leases is as follows:

	Year Ended December 31,
	2025		2024		2023
Cash paid for amounts included in measurement of liabilities:
Operating cash outflows for operating leases	$	899,511	$	924,461	$	760,847
Operating cash outflows for operating leases - discontinued operations		—		—		11,337

Future lease payments relating to the Company's operating lease liabilities from continuing operations as of December 31, 2025 are as follows:

Years ending December 31,	Total
2026	$	839,297
2027		813,538
2028		833,242
2029		541,378
2030		296,859
Thereafter		74,159
Total future lease payments		3,398,473
Less: imputed interest		(440,265)
Total lease obligations		2,958,208
Less: current obligations		(661,047)
Noncurrent lease obligations	$	2,297,161