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LEASES
3 Months Ended
Mar. 31, 2026
Leases  
LEASES

11. LEASES

 

Office and Warehouse Leases and Sublease

 

The components of net operating lease expenses, recorded within operating expenses on the Company's condensed consolidated statements of operations for the three months ended March 31, 2026, and 2025, were as follows:

     
   Three Months Ended
March 31, 2026
 
Operating lease cost  $97,000 
Less: Sublease income   (15,000)
Total  $82,000 

 

 

   Three Months Ended
March 31, 2025
 
Operating lease cost  $137,000 

 

The Company entered a 5-year operating lease beginning January 1, 2026, for new office and warehouse space with periodic lease payments of approximately $32,000.

 

During the three months ended March 31, 2026, the Company entered a month-to-month sublease agreement with Gresham Worldwide, Inc. which is a related party. The sublease is for 38% of the Company’s office and warehouse space and has been recorded as a reduction in operating lease cost.