On November 30, 2024, the Company entered into a lease agreement with Juneau-Bell, LLC for new office space located at 27755 Diehl Road, Suite 200, Warrenville, IL 60555, which constitutes the Company's current headquarters. The lease commencement date was March 1, 2025. A security deposit of $43,970 and the first month’s base rent of $8,365 were paid at signing. These amounts were recorded in Deposits with Vendors and Other Current Assets, respectively, in the Condensed Consolidated Balance Sheets at December 31, 2024. The lease term is 66 months with one option to renew for an additional 60 months period. The Company classified the agreement as an operating lease under ASC 842 Leases. On the commencement date of March 1, 2025, the Company recognized an ROU asset of $435,149 and a corresponding long-term lease liability of $426,787.

The Company's lease costs were $36,622 and $28,200 for the three months ended March 31, 2025 and 2024, respectively, and were recognized within Selling and administrative expenses in the Condensed Consolidated Statements of Operations. In addition to base rent, the Company is required to pay certain variable costs such as taxes, insurance and common area maintenance costs. These variable costs are excluded from the calculation of operating lease liabilities and ROU asset. Both the base rent and variable costs are subject to six (6) months abatement starting March 1, 2025.

As of March 31, 2025, the expected annual minimum lease payments of the Company’s operating lease liability were as follows:


Fiscal year	Operating Lease
2025 (April - December) 1	$	44,846
2026		103,725
2027		107,375
2028		111,025
2029		114,675
Thereafter		68,896
Total undiscounted minimum lease payments		550,542
Less: Present value discount		(120,732	)
Lease liability	$	429,810

Discount rate - operating lease		8.5	%

1. Includes base rent abatement for a period of six months