We are subject to litigation, claims, investigations, and audits arising from time to time in the ordinary course of our business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of any such matters as of June 30, 2023 and December 31, 2022, are not expect to have a materially adverse effect on the consolidated financial position or results of operations of the Company.

The Company has made certain indemnities, under which it may be required to make payments to an indemnified party, in relation to certain transactions. The Company indemnifies its directors, officers, employees, and agents to the maximum extent permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has indemnified its lessor for certain claims arising from the use of the facilities. The duration of the indemnities varies, and in many cases is indefinite. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets.

The Company leases its offices, manufacturing, and warehouse facility in San Diego County under a non-cancelable operating lease. Our corporate headquarters are in a leased space comprising of approximately 29,342 square feet in Escondido, California under a lease that was modified in February 2019 and expires in August 2024. The Company also leases a 3,208 square foot facility in Salt Lake City, Utah that houses our Ion software development team that was scheduled to expire in June 2023 pursuant to its terms, and was extended through June 2025. The Company is the lessee of 1,632 square feet located in Anaheim, California, which was scheduled to expire in June 2023 pursuant to its terms, and was extended through June 2025. OSS Europe leases space comprised of 11,836 square feet on a month-to-month basis.

Other information related to leases as of the three and six month periods ended June 30, 2023 and 2022, was as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Operating lease cost	$	196,538	$	165,785	$	334,107	$	326,695
Total lease cost	$	196,538	$	165,785	$	334,107	$	326,695

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	81,843	$	165,785	$	243,185	$	326,695

Right-of-use assets obtained in exchange for new operating lease liabilities		-		-		-		-

Weighted-average remaining lease term - operating leases					16.2 months		25.8 months
Weighted-average discount rate - operating leases					12.1%		12.8%

The following table presents a maturity of the Company’s operating lease liabilities as of June 30, 2023:


Year	Operating Leases
Remaining payments in 2023	$	306,030
2024		446,361
2025		21,061
2026		2,408
Total lease payments	$	775,860
Less: Amount representing interest		(43,355	)
Present value of lease payment		732,505
Less: current portion of operating lease obligation		(583,675	)
Operating lease obligation, net of current portion	$	148,830

In the normal course of business, the Company may enter into purchase commitments for inventory components to be delivered based upon non-cancellable, pre-established, delivery schedules that are over a period that may exceed one year. Total non-cancellable purchase orders as of June 30, 2023, were $10,762,867.

During the three month period ended June 30, 2023, the Company had two customers that accounted for (in the aggregate) approximately 29% of revenue, and during the three month period ended June 30, 2022, the Company had one customer that accounted for approximately 35% of revenue, for which each of such customers represented greater than 10% of our consolidated quarterly revenue.

During the six month period ended June 30, 2023, the Company had two customers that accounted for (in the aggregate) approximately 33% of revenue, and during the six month period ended June 30, 2022, the Company had one customer that accounted for approximately 31% of revenue, for which each of such customers represented greater than 10% of our consolidated quarterly revenue.

As of June 30, 2023 and December 31, 2022, the Company had two customers that accounted for (in the aggregate) approximately 29% and 47% of trade accounts receivables, respectively, for which each of such customer’s balances represented greater than 10% of our consolidated trade accounts receivable balance.

During the three month periods ended June 30, 2023 and 2022, the Company had approximately 36% and 23%of purchases, respectively, from vendors/suppliers for which each of such vendors represents greater than 10% of our consolidated purchases.

During the six month periods ended June 30, 2023 and 2022, the Company had approximately 32% and 32% of purchases, respectively, from vendors/suppliers for which each represents greater than 10% of our consolidated purchases.