LEASES

6 Months Ended

Jun. 30, 2026

LEASES

The Company leases manufacturing and office space under an agreement classified as an operating lease. The Company entered into an amendment to the lease agreement for its operating facility on April 15, 2025 that extended the term of the lease until April 30, 2031. The lease agreement does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease. In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms.

The Company also leases office equipment in agreements classified as operating and financing leases.

For the six months ended June 30, 2026 and 2025, the Company’s operating lease expense was $1,189,958 for both periods. For the three months ended June 30, 2026 and 2025, the Company’s operating lease expense was $594,979 and $594,979, for both periods. There was no expense relating to the financing lease for the periods presented.

Future minimum lease payments under non-cancellable operating and financing leases as of June 30, 2026 were as follows:

For the Year Ending December 31,	Operating			Financing			Total
Remainder of 2026	$	1,152,266		$	12,294		$	1,164,560
2027		2,336,077			24,588			2,360,665
2028		2,300,990			24,588			2,325,578
2029		2,360,515			24,588			2,385,103
2030		2,431,332			24,588			2,455,920
Thereafter		818,389			12,294			830,683
Total undiscounted lease payments		11,399,569			122,940			11,522,509
Less imputed interest		(2,312,163	)		(17,334	)		(2,329,497	)
Present value of lease payments	$	9,087,406		$	105,606		$	9,193,012

The following table sets forth the right-of-use assets and lease liabilities as of:

	June 30,		December 31,
	2026		2025
Assets
Right-of-use assets operating	$	8,777,416	$	9,515,207
Right-of-use assets finance (included in Property and equipment, net)		105,606		—
Total Right-of-use assets	$	8,883,022	$	9,515,207

Liabilities
Current operating lease liabilities	$	1,515,379	$	1,434,385
Long-term operating lease liabilities		7,572,027		8,353,120
Total operating lease liabilities	$	9,087,406	$	9,787,505

Current finance lease liabilities	$	18,613	$	—
Long-term finance lease liabilities		86,993		—
Total finance lease liabilities	$	105,606	$	—

Total Lease Liabilities	$	9,193,012	$	9,787,505

The Company’s weighted average remaining lease term for its operating leases is 4.8 years as of June 30, 2026. The Company’s weighted average discount rate for its operating leases is 9.52% as of June 30, 2026. The Company’s weighted average remaining lease term for its financing lease is 5 years and its discount rate is 6.15% as of June 30, 2026.