The Company may be subject to a variety of claims and suits that arise from time to time in the ordinary course of business. We are not a party to any litigation as a defendant where a loss contingency is required to be reflected in our condensed consolidated financial statements.

ExO owes consultants success fees of up to $0.7 million that are contingent upon the approval and issuance of the Environmental Impact Assessment (“EIA”). The EIA has not been approved as of the date of this report and the contingent success fees have not been accrued.

At June 30, 2024, the right-of-use (“ROU”) asset and lease obligation for our corporate office operating lease were $25,056 and $26,579, respectively.

Future minimum lease payments for assets under non-cancelable operating lease agreements with original terms of more than one year for the remainder of 2024 and thereafter are as follows:


Year ending December 31,	Annual payment obligation
2024	$	26,913

We recognized approximately $53,188 and $53,084 in rent expense associated with these leases for the three months ended June 30, 2024 and 2023, respectively, and $109,846 and $123,911 for the six months ended June 30, 2024 and 2023, respectively, which was recorded in Marketing, general and administrative expenses on the condensed consolidated statement of operations.