H. Leases

The Company determines if an arrangement is a lease at inception. Any operating lease is included in operating lease right-of-use (“ROU”) asset and operating lease obligation in our consolidated balance sheets. Operating lease expense is included in general and administrative expenses on the consolidated statements of operations. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. If the lease does not provide an implicit rate of return, the Company will use the applicable risk-free interest rate in effect at the time of the lease inception in determining the present value of lease payments.

Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The Company had a short-term lease for its corporate office in 2024, which expired in February 2025 and was not renewed. In January 2025, the Company entered into a one year lease with a related party for office, warehouse and manufacturing space in Wisconsin for $50,000 per month. The lease was renewed for an additional one year term ending December 31, 2026. At December 31, 2025 and 2024, the Company had an operating lease obligation of $588,490 and $0, respectively, which is reflected as a current liability on the accompanying consolidated balance sheets.

The components of lease expense during the years ended December 31, 2025 and 2024 are as follows:

Weighted average lease term and discount rate as of December 31, 2025 and 2024 are as follows: