Note 3 - Operating Leases - Right-of-Use Assets and Lease Liability Obligations

The Company has three non-cancelable operating leases, for office and warehousing space, that expires in February 2025, February 2025 and January 2027, respectively. Rent expense for these operating leases is recognized over the term of the lease on a straight-line basis.

Below is a summary of the Company's Operating Right-of-Use Assets and Operating Lease liabilities as of June 30, 2024 and December 31, 2023:

		2024		2023
*Assets*
Operating lease ROU assets	$	699,260	$	845,209

Liabilities
Operating lease liabilities, current	$	282,581	$	299,432
Operating lease liabilities, net of current portion		416,679		545,777
Total operating lease liabilities	$	699,260	$	845,209

During the six months ended June 30, 2024 and 2023 the Company recognized $145,689 and $145,194, respectively, in operating lease expenses, which are included in office lease and expenses in the Company's consolidated statements of operations and comprehensive income (loss). Generally, the Company's lease agreements do not specify an implicit rate. Therefore, the Company estimates the incremental borrowing rate, which is defined as the interest rate the Company would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates.

As of June 30, 2024, and December 31, 2023 the following disclosures for the remaining lease terms and incremental borrowing rates were applicable:

Supplemental disclosure	June 30, 2024	December 31, 2023
Weighted average remaining lease term	2.56 years	3.55 years
Weighted average discount rate	3.77%	3.77%

Maturities of lease liabilities as of June 30, 2024 were as follows:

Year ended December 31,		Amounts under Operating Leases
Remaining 2024	$	157,982
2025		295,466
2026		298,791
2027		25,455
Total minimum lease payments	$	777,694
Less: amount representing interest	$	(78,434	)
Total operating lease liabilities	$	699,260

Supplemental cash flow information for the six months ended June 30, 2024 and 2023 are as follows:

		Six months ended		Six months ended
		June 30, 2024		June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities	$	154,768	$	150,041