The Company determines whether a contract is, or contains, a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. The Company leases its corporate office and warehouse facilities under a non-cancellable operating lease agreement. The lease commenced on February 7, 2020, for a facility located at Dallas, Texas, comprising approximately 21,476 square feet. Leases with an initial term of 12 months or less are not included on the balance sheets.

On February 2, 2025, the Company entered into a First Amendment to its existing lease agreement for its corporate headquarters and production plant located in Dallas, Texas. The amendment extends the lease term for an additional 60 months beginning August 1, 2025 and adds approximately 16,380 square feet of adjacent space, bringing the total leased premises to approximately 37,856 square feet. The amendment includes annual base rent increases ranging, in thousands, from $16 to $18 per month over the extended term and provides for two additional 60-month renewal options.

In accordance with ASC 842, the Company recognizes a right-of-use (ROU) asset and corresponding lease liability for its operating lease based on the present value of future lease payments over the lease term, discounted using the Company’s incremental borrowing rate. On the effective date of the lease, the Company recognized an ROU asset and a corresponding lease liability of approximately $833. At lease commencement, the applicable discount rate was 7.60%. Lease expense is recognized on a straight-line basis over the lease term. The lease terminates in July 2030.

 SCHEDULE OF LEASE

As of June 30, 2026, and December 31, 2025 operating lease liabilities pertaining to its office and warehouse facility totaled $717 and $782, respectively.

As of June 30, 2026 and December 31, 2025, the Company recognized the following related to its operating lease:

 SCHEDULE OF OPERATING LEASE

Amortization of right-of-use assets for the three months ended June 30, 2026, and 2025 as $36 and $25, respectively.

Future minimum lease payments under the non-cancellable operating lease as of June 30, 2026 and December 31, 2025, are as follows:

 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS