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COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Operating Leases – Right of Use Asset and Liability
The Company has leases for office, warehouse space, and cargo vans.
Operating lease costs by financial statement line item are as follows:
Three Months Ended
March 31,
TypeFinancial Statement Line Item20252024
Operating leaseGeneral and administrative$22,777 $8,863 
Operating leaseOperations191,066 59,645 
Operating leaseResearch and development68,331 32,231 
Total lease costs$282,174 $100,739 
Supplemental cash flow information related to leases is as follows:
Three Months Ended
March 31,
20252024
Cash paid for operating lease liabilities$278,168 $139,077 
Right-of-use assets obtained in exchange for operating lease obligations$325,222 $— 
Supplemental balance sheet information related to leases is as follows:
March 31,
2025
December 31,
2024
Weighted-average remaining lease term (in years)2.512.65
Weighted-average discount rate7.25 %7.24 %
Future annual minimum payments under operating leases as of March 31, 2025, are as follows:
Remainder of 2025$689,361 
2026787,794 
2027568,553 
202885,245 
2029— 
Total undiscounted future cash flows2,130,953 
Less: imputed interest(245,230)
Total operating lease liabilities$1,885,723 
Finance Lease – Failed Sales-Leaseback
In November 2022, the Company entered into a lease agreement with Farnam Capital for its robot assets. As per ASC 842-40-25, the transaction was considered a failed sales-leaseback and therefore the lease was accounted for as a financing agreement. There was no outstanding liability at March 31, 2025. In April 2025, the Company exercised the option to purchase the assets at the end of the lease for 45% of the original equipment cost.
Contingencies
The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations.