LEASES

3 Months Ended

Mar. 31, 2025

NOTE 11 – LEASES

The Company maintains an operating lease for its office space and operating facility. The lease has a remaining term of 80 months. The Company determines if an arrangement is a lease at inception. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. The Company used a weighted average incremental borrowing rate of 8.4% Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of March 31, 2025, the amount of right-of-use assets and lease liabilities were $855,117 and $881,446, respectively. As of December 31, 2024, the amount of right-of-use assets and lease liabilities were $915,803 and $961,490, respectively. Aggregate lease expense for the three months ended March 31, 2025, and 2024 was $79,725 and $76,386, respectively.

The following table provides the maturities of lease liabilities at March 31, 2025:

	Operating Lease			Remaining Term in Years
2026		304,081
2027		172,543
2028		177,281
2029		183,961
2030		189,614
thereafter		47,610
Total lease payments		1,075,090
Less: imputed interest		(193,644	)
Present value of lease liability		881,446			4.61

MDWerks, Inc. 10-Q