8. 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 condensed consolidated balance sheets. Operating lease expense is included in general and administrative expenses on the condensed 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, Independence WI LLC, 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 June 30, 2026 and December 31, 2025, the Company had an operating lease obligation of $397,897 and $588,490, respectively, which is reflected as a current liability on the accompanying condensed consolidated balance sheets. Beginning in May 2026, the lease payments were suspended for six months.

There were no variable lease costs for the three and six months ended June 30, 2026 and 2025.

The components of lease expense are as follows:

Weighted average lease term and discount rate are as follows: