Leases

12 Months Ended

Dec. 31, 2024

N0TE 13 - LEASES

Leases

The Company leases its offices, manufacturing, and warehouse facility in San Diego County under a non-cancellable operating lease. Our corporate headquarters are in a leased space comprising of approximately 29,342 square feet in Escondido, California under leases that were modified and extended in September 2023 and expires in August 2030. The Company also leases a 3,208 square foot facility in Salt Lake City, Utah expiring in June 2025, that houses our Ion software development team. Additionally, we lease a 1,632 square foot facility located in Anaheim, California, with the lease expiring in June 2025. Both the Utah and Anaheim leases expired in June 2023 and were renewed for two-year periods on similar terms. The Bressner leases space comprising of 11,836 square feet on a month-to-month basis. For the years ended December 31, 2024 and 2023, rent expense was $788,629 and $676,204, respectively.

In addition to leases for physical facilities the Company also leases certain office equipment and vehicles. For the years ended December 31, 2024 and 2023, lease expenses, excluding office leases, was $90,144 and $99,224, respectively.

Other information related to leases as of the year ended December 31, 2024 and 2023 are as follows:


	For the Year Ended December 31,
	2024		2023
Operating lease expense	$	788,629	$	676,204
Total lease expense	$	788,629	$	676,204

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	608,803	$	551,344

Right-of-use assets obtained in exchange for new operating lease liabilities	$	-	$	1,590,568
Operating lease obligation for new operating leases	$	-	$	1,446,865

Weighted-average remaining lease term - operating leases	65.9 months		73 months
Weighted-average discount rate - operating leases	13.6%		13.6%

The following table presents maturity of the Company's operating lease liabilities as of December 31, 2024:


Year	Operating Leases
2025		480,727
2026		419,889
2027		414,882
2028		419,922
2029		436,719
Thereafter		298,808
Total lease payments		2,470,947
Less: Amount representing interest		(671,326	)
Present value of lease payment		1,799,621
Less: current portion of operating lease obligation		(285,937	)
Operating lease obligation, net of current portion	$	1,513,684