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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

10. Commitments and Contingencies

 

Operating Leases

 

On October 27, 2020, the Company amended its existing lease (the “Lease Amendment”) for its corporate headquarters located at 60 Cutter Mill Road, Great Neck, New York, to expand the office premises and to extend the term of the non-cancelable lease through November 30, 2027. Among other things, the Lease Amendment provides for gradual rent increases from approximately $4,500 per month during the first three years to $5,100 per month during the last year of the extension term, and requires payments for electricity and future escalation increases, as defined. The Company also leases office equipment under a non-cancelable lease that expired in March 2024.

 

 

At December 31, 2024, approximate future minimum lease payments, including mandatory fixed electricity charges, are as follows:

  

      
2025  $60,926 
2026   60,926 
2027   55,848 
Total minimum lease payments   177,700 
Less: amount representing interest   (10,581)
Present Value of Net Minimum Lease Payments  $167,119 

 

At December 31, 2024, the Company’s operating lease had a weighted-average remaining lease term of 2.89 years, and the weighted-average discount rate used was 4.14%, which was based on the Company’s incremental borrowing rate at the inception of the lease.

 

Rent expense, including fixed electricity charges and variable real estate taxes, in the years 2024 and 2023 was approximately $63,000 and $64,000, respectively.

 

Employment Agreements

 

In March 1999, the Company entered into an employment agreement with Mr. Ran, pursuant to which: (i) Mr. Ran’s employment term renews automatically on June 30th of each year for successive one-year periods unless either party gives to the other written notice at least 180 days prior to June 30th of its intention to terminate the agreement; (ii) Mr. Ran receives a current annual base salary of $380,000 and annual bonuses as determined by the Compensation Committee of the board of directors, in its sole and absolute discretion, and is eligible to participate in all executive benefit plans established and maintained by the Company; and (iii) Mr. Ran agreed to a one-year non-competition period following the termination of his employment.

 

In June 2024, the Compensation Committee approved an increase of Mr. Ran’s annual base salary from $350,000 to $380,000. Mr. Ran’s annual base compensation for the years 2024 and 2023 was $365,000 and $350,000, respectively. In addition, the Compensation Committee approved an annual bonus of $30,000 and $70,000 to Mr. Ran in 2024 and 2023, respectively.