Note 12 - Commitments and Contingencies

Legal Proceedings

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies, and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals.

Operating Leases

On November 25, 2020, the Company entered into an office lease agreement with AM Property Holding II Corp, the agent for 1025 II, LLC. The Company moved into Suite 311 on the third floor of the building located at 1025 Old Country Road, Westbury, New York. On September 15, 2021, the Company ended the aforementioned lease agreement and entered into a new lease agreement with the existing landlord and into Suite 421 on the fourth floor of the same building. The lease accrues interest based on a weighted-average interest rate of 5.52% and a weighted-average lease term of 72 months.

On January 2, 2024, the Company acquired two leases as part of the Simplified Companies acquisition. Each lease was recognized and measured at fair value based on the remaining lease term at the date of acquisition by applying ASC 842, Leases. The office spaces for these leases are located in Lauderhill, Florida and Bonao, Dominican Republic. In 2024, the Company added a second call center location in Le Vega, Dominican Republic.

The Company recorded operating lease expenses of $125,532 and $140,381 for the nine months ended September 30, 2025 and 2024, respectively. The Company recorded operating lease expenses of $39,615 and $48,549 for the three months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, the following table reconciles the undiscounted cash flows for the following years and total of the remaining years to the operating lease obligation recorded in the condensed consolidated balance sheets, the future minimum annual lease payments under the operating leases were as follows:

The weighted-average remaining lease term and discount rate related to the Company’s operating lease liabilities as of September 30, 2025 are 1.90 years and 5.52%, respectively.

Note 10 – Commitments and contingencies

Operating leases

On November 25, 2020, the Company entered into an office lease agreement with AM Property Holding II Corp, agent for 1025 II, LLC. The Company moved into suite 311 on the third floor of the building located at 1025 Old Country Road, Westbury, New York. On September 15, 2021, the Company ended the aforementioned lease agreement and entered into a new lease agreement with the existing landlord and moved into Suite 421 on the fourth floor of the same building. The lease accrues interest based on a weighted average interest rate of 5.52% and a weighted average lease term 72 months.

On January 2, 2024, the company acquired two leases as part of Simplified Companies acquisition as described below. Each lease was recognized and measured at fair value based on the remaining lease term at the date of acquisition by applying ASC 842 - Leases. The fair value of the ROU assets and Lease liabilities acquired was $171,492 as of the acquisition date. The office spaces for these leases are located in Lauderhill, Florida and Bonao, Dominic Republic.

During the year ended December 31, 2024, the Company also added a second call center location in Le Vega, Dominican Republic.

The following table presents the Company’s ROU assets and lease liabilities as of December 31, 2024, and December 31, 2023: