Item 2. Properties
ITEM 2. PROPERTIES.
The Company leases approximately 10,535 square feet of office space for its San Antonio, Texas executive offices and operations. On September 18, 2025 we renewed our lease, to run concurrently with our additional leased space in the same building. The lease expires on December 31, 2030. Rental expense, excluding rental expense for the additional space referenced below, under the operating lease was $174,380 and $165,817 for the years ended December 31, 2025 and 2024, respectively.
Pursuant to a lease amendment that commenced on April 1, 2021, we began leasing an additional 2,734 square feet of space at our San Antonio, Texas office building. The incremental annual rent for this additional space during the lease term ranges from $57,000 to $60,000. Rental expense for this additional space for the years ended December 31, 2025 and 2024 was $51,249 and $49,653, respectively.
Pursuant to a second lease amendment that commenced on April 1, 2022, we began leasing an additional 6,628 square feet of space at our San Antonio, Texas office building. The incremental annual rent for this additional space during the lease term ranges from $144,000 to $156,000. Rental expense for this additional space for the years ended December 31, 2025 and 2024 was $114,995 and $109,355, respectively.
The Company assumed a lease in San Antonio, Texas as a part of the Information Management Solutions, LLC acquisition for its Output Solutions employees and warehouse operations. The lease had a remaining life of 45 months and expired on September 30, 2024. On September 16, 2024 the Company entered into a lease amendment commencing on October 1, 2024, extending the term of the existing lease for a period of 60 months, expiring on September 30, 2029. The space leased is 22,400 square feet. Annual rents during the lease term range from $174,000 to $225,000. Rental expense for the years ended December 31, 2025 and 2024 was $177,993 and $135,489, respectively.
On January 1, 2021, we entered into a lease in Austin, Texas commencing on January 1, 2021 for our Austin technology organization. On January 31, 2024, the Company entered into a lease amendment commencing on February 1, 2024, extending the term of the existing lease for a period of 24 months and expiring on January 31, 2027. The space leased is 1,890 square feet. Rental expense for the years ended December 31, 2025 and 2024 was $78,700 and $83,610, respectively.
The Company has various copier equipment with a lease that has not expired. Rental expense was $5,497 and $5,508 for the years ended December 31, 2025 and 2024, respectively.
The weighted average remaining lease term for all of our leases is 3.95 years. The weighted average discount rate is 4.61%.
The Company recognized total operating lease expense of approximately $728,000 and $660,000 for the years ended December 31, 2025 and 2024, respectively. In 2025, the operating lease expense of $728,000 consisted of $597,000 of fixed operating expense and $131,000 of interest expense.
We believe that our existing and new properties will be adequate to meet our needs through December 31, 2025.
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