Note 10 – Commitments and Contingencies

From time to time, the Company may be involved in various legal proceedings, claims, and investigations arising in the ordinary course of business. The Company records a liability when it is probable that a loss has been incurred and the amount can be reasonably estimated. While the outcome of such matters cannot be predicted with certainty, management believes that the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

In February 2022, we entered into a commercial operating lease for our primary office and warehouse/distribution space in Texas. The lease requires us to pay for insurance, taxes, and our share of common operating expenses. This lease expires in March 2027.  This lease is classified as an operating lease and we established a right of use asset and lease liability using a 10% discount rate.

Total operating lease costs were approximately $30,400 and $28,500 for the three months ended June 30, 2026 and 2025, respectively, and approximately $59,000 and $57,500 for the six months ended June 30, 2026 and 2025, respectively. Operating lease costs consist solely of base rental and common area maintenance costs.   We have no financing leases. 

Future undiscounted cash flows under this lease are: