We lease office space in Nevada. The operating lease requires monthly payments of $5 and expires in October 2027. At June 30, 2026, our ROU asset and lease liability totaled $69. Lease expense totaled $16 and $14, for the three months ended June 30, 2026 and 2025, respectively. Lease expense totaled $33 and $28, for the six months ended June 30, 2026 and 2025, respectively.

We lease a facility in Utah used for technical integration and training. This operating lease requires monthly payments of $77, includes periodic increases, as well as, various pass-thru expenses, and expires in April 2029. At June 30, 2026, our ROU asset totaled $2,076 and lease liability totaled $2,440. Lease expense totaled $211 and $210 for the three months ended June 30, 2026 and 2025, respectively. Lease expense totaled $419 for both six month periods ended June 30, 2026 and 2025.

We also lease a facility in California for corporate promotional and marketing through 2035. In March 2024, we renewed the lease for another 10 years recording an ROU asset and lease liability of $5,512. The lease offered two payment options: either a single payment of $6,000 or annual payments each March for a total commitment of approximately $7,500. Initially, we selected the single payment option; on January 13, 2025, we changed to the annual payment option, adjusting our ROU asset and lease liability approximately $600 for the modification. At June 30, 2026, our ROU asset totaled $4,573 and our lease liability totaled $4,604. Lease expense totaled $181 for both three month periods ended June 30, 2026 and 2025, respectively. Lease expense totaled $363 and $357 for the six months ended June 30, 2026 and 2025, respectively.

We have a service agreement for the use of an aircraft from a related party discussed in more detail in Note 4. We incurred approximately $566 and $1,126 for the three and six months ended June 30, 2026 compared to $380 and $756 for the three and six months ended June 30, 2025.