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OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS
 6 Months Ended
Jun. 30, 2026
Operating Lease Liabilities And Right Of Use Assets  
OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS

11. OPERATING LEASE LIABILITIES AND RIGHT OF USE ASSETS

 

Operating Leases

 

The Company measured and recorded right of use assets and corresponding operating lease liabilities at the lease commencement dates.

 

The Company has made operating lease payments in the amount of $68,333 and $45,511 during the six months ended June 30, 2026 and 2025. Rent expense charged to operations, which differs from rent paid due to rent credits and to increasing amounts of base rent, is calculated by allocating total rental payments on a straight-line basis over the term of the lease. For the six months ended June 30, 2026 and 2025, the Company incurred operating lease expense amounted to $262,986 and $232,535, respectively.

 

Operating lease liabilities consist of:

 

SCHEDULE OF OPERATING LEASE LIABILITIES 

       
   As of 
   June 30,   December 31, 
   2026   2025 
Current portion  $1,451,725   $1,233,892 
Long term portion   200,306    410,572 
Total operating lease liabilities  $1,652,031   $1,644,464 

 

The following summarizes total future minimum operating lease payments at June 30, 2026:

 

Twelve months period ended June 30,    
2027  $1,474,802 
2028   156,848 
2029   51,480 
Total minimum lease payments   1,683,130 
Less: present value discount   (31,099)
Present value of minimum lease payments   1,652,031 

 

As of June 30, 2026 and December 31, 2025, the weighted average discount rate for these leases is 4.67% and 4.67%, and the weighted average remaining term is 23 months and 28 months, respectively.