During the year ended December 31,2025, the Company entered into a finance lease arrangement for servers. The lease has a term of three years and includes a purchase option that the Company is reasonably certain to exercise, resulting in a finance lease classification under ASC 842. Finance lease right of use assets and corresponding lease liabilities are recognized at the commencement date based on the present value of remaining lease payments, using the lease’s implicit rate, if determinable, or the Company’s incremental borrowing rate at lease commencement.

Finance lease cost for the year ended December 31, 2025 consisted of the following:


Amortization of finance lease ROU assets	$	16,243
Interest on finance lease liabilities		3,736
Total finance lease expense	$	19,979

Finance lease right of use assets and lease liabilities consisted of the following at December 31, 2025:


Finance lease ROU assets	$	307,997
Current finance lease liabilities		101,822
Long term finance lease liabilities	$	206,175

The finance lease right-to-use assets are included in Other assets, and finance lease liabilities are included in Other accrued liabilities (current) and Other long-term liabilities (non-current) on the Balance Sheets.

The weighted average remaining lease term at December 31, 2025 was 2.83 years. The weighted average discount rate at December 31, 2025 was 7%.


2026	$	120,156
2027		120,156
2028		100,130
Total lease payments		340,442
Less: imputed interest		(32,445)
Present value of lease liability	$	307,997