v3.26.1
LEASES
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2026, and 2025, were as follows:

        
   Three Months Ended
June 30, 2026		   Six Months Ended
June 30, 2026		 
Operating lease cost  $101,000   $198,000 
Less: Sublease income   (45,000)   (60,000)
Total  $56,000   $138,000 

 

         
   Three Months Ended
June 30, 2025		   Six Months Ended
June 30, 2025		 
Operating lease cost  $137,000   $275,000 

 

 

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.

 

On March 30, 2026, the Company entered a short-term sublease agreement commencing April 1, 2026 and expiring January 31, 2027 with Microsource 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.