Note 6-Leases

Operating Leases

The Company currently maintains four leases for office spaces located in Melville, NY, Austin, TX, Miami FL and London UK.

On January 1, 2022, the Company entered into a lease agreement for office space with WeWork in Austin, TX. On September 3, 2024, the Company amended this agreement and is on an eight-month lease agreement with payments of $1,056 per month.

On January 17, 2024, the Company entered into a lease agreement for office space in Melville, NY. The lease commenced on April 1, 2024, and has a term of sixty-seven months. The lease requires monthly payments of $11,931 and expires on October 30, 2029.

In November 2024, the Company entered into an Office Service Agreement with Regus Management Group, LLC for office space located in, Miami, Florida. The lease commenced on December 1, 2024, and has a defined term ending on November 30, 2025. The lease requires monthly payments of $1,000. The space is utilized primarily as a satellite office to support regional operations.

On November 15, 2024, the Company entered into a Service Agreement with IW Group Services (UK) Limited for office space located in London, United Kingdom. The lease commenced on January 1, 2025, and is set to expire on December 31, 2025. The agreement provides workspace and includes monthly lease payments of approximately $1,041.

The Company determines whether an arrangement contains a lease at the inception of the contract. Right-of-Use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date, based on the present value of estimated lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise those options. The Company has elected the practical expedient to exclude leases with terms of 12 months or less from the balance sheet. Lease expense for these short-term leases is recognized on a straight-line basis over the lease term. Variable lease payments that depend on an index or rate are initially measured using the index or rate in effect at the lease commencement date. Other variable payments are recognized in the period in which the obligation is incurred. A discount rate of 9% was used in the preparation of ROU assets and lease liabilities.

The components of lease expense were as follows:

Supplemental cash flow and other information related to leases were as follows:

Long-term obligations under the operating and finance leases at March 31, 2025, mature as follows:

As of March 31, 2025, the Company had no additional significant operating or finance leases that had not yet commenced. Rent expense under all operating leases for the three months ended March 31, 2025 and 2024 was $52,958 and $73,303, respectively.