Operating Leases

3 Months Ended

Mar. 31, 2024

Operating Leases

Operating Leases

Note 7 – Operating Leases

As identified in Note 3 “Acquisition”, the acquired businesses, specifically Rotor Riot, has entered into a five-year operating lease for approximately 6,900 square feet of warehouse and office space in Orlando, Florida. The lease commenced in November 2023 and expires in October 2028. The Company has valued the ROUA and the associated liability, as of February 15, 2024, at $378,430. The Company has no finance leases. Operating lease expense totaled $13,143 from the date of acquisition through the period ended March 31, 2024. The following is a summary of future lease payments required under the five-year lease agreement:

Year	Future Lease Payments		Operating Lease Discount			Operating Lease Liability
2024	$	73,094	$	(29,242	)	$	43,852
2025		101,133		(33,313	)		67,820
2026		105,178		(25,468	)		79,710
2027		109,037		(15,985	)		93,052
2028		94,185		(4,776	)		89,409
Total	$	482,627	$	(108,784	)	$	373,843

Supplemental Information
Weighted average remaining lease term (in years)	4.58
Weighted average discount rate	11.49%