The Company’s lease is primarily comprised of manufacturing and office space. This lease is classified and accounted for as an operating lease. The building lease term is for 88 months commencing on September 21, 2020 at a rent of $50,000 per month including taxes, insurance and common area maintenance until December 31, 2020. Beginning January 1, 2021, the rent adjusted to $80,000 per month on a triple net basis and shall increase at an annual rate of 3% per annum until December 31, 2027.

Effective September 1, 2023, the lease was amended to reduce the rentable square feet from approximately 100,000 to approximately 75,000 square feet and the rent and tenant share of expenses were decreased in proportion to the reduction in the rentable square feet.

As of June 30, 2025 and December 31, 2024, assets and liabilities related to the Company’s leases were as follows:


	As of June 30,		As of December 31,
	2025		2024
Operating lease right-of-use assets, net	$	1,615,029	$	1,880,372
Current portion of operating lease liability		625,906		578,153
Non-current portion of operating lease liability		1,136,669		1,464,872

During the three months ended June 30, 2025 and 2024, the Company recorded operating lease expense included in selling, general and administrative expenses of $190,497 and $190,497, respectively. During the six months ended June 30, 2025 and 2024, the Company recorded operating lease expense included in selling, general and administrative expenses of $380,995 and $380,995, respectively.

Future maturities of the operating lease liability are as follows:


Remainder of 2025	$	396,102
2026		815,969
2027		840,449
Total lease payments		2,052,520
Less amounts representing interest		(289,945	)
Present value of lease liability	$	1,762,575

The remaining weighted average lease term and discount rate of the operating leases is 30 months and 7.0%, respectively.