Leases

12 Months Ended

Dec. 31, 2025

11. Leases

We enter into lease contracts for certain of our facilities at two locations. Our leases have remaining lease terms of 2two and five years. On December 18^th, 2024, our lease agreement for the Elgin facility was extended through December 31^st, 2028.

The table below describes our lease position as of December 31, 2025 and 2024:

Schedule of Lease Positions

Operating Leases		2025				2024
Right of use assets		$	3,393,000			$	3,950,000
Lease Liabilities - Current		$	596,000			$	480,000
Lease Liabilities – Noncurrent		$	2,873,000			$	3,470,000

During the years ended December 31, 2025 and 2024, we recorded operating lease expenses to general and administrative expense of $1,085,000 and $1,030,000, respectively.

At December 31, 2025, maturities of operating lease liabilities are as follows:

Schedule of Operating Lease Liabilities


2026		$	1,048,000
2027			1,083,000
2028			1,119,000
2029			627,000
2030			646,000
Thereafter			217,000
Total Lease Payments			4,740,000
Less: Imputed interest			(1,271,000	)
Total Lease Liabilities		$	3,469,000

As of December 31, 2025, the weighted average remaining lease term and weighted average discount rate for our operating leases are 4.5 years and 14.07%, respectively. We calculated the weighted-average discount rate using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term.