Leases

6 Months Ended

Jun. 30, 2025

Note 8 — Leases

We lease office space in Nevada. The operating lease requires monthly payments of $5 and expires in October 2025. At June 30, 2025, our ROU asset and lease liability totaled $17. Lease expense totaled $14 and $28 for the three and six months ended June 30, 2025 and 2024.

We lease a facility in Utah used for technical integration and training. This operating lease requires monthly payments of $75, includes periodic increases, and expires in April 2029. At June 30, 2025, our ROU asset totaled $2,681 and lease liability totaled $3,120. Lease expense totaled $210 for the three months ended June 30, 2025, and 2024, and totaled $419 for the six months ended June 30, 2025 and 2024.

We also lease a facility in California for corporate promotional and marketing through 2035. In March 2024, we renewed the lease for another 10 years recording an ROU asset and lease liability of $5,512. The lease offered two payment options: either a single payment of $6,000 or annual payments each March for a total commitment of approximately $7,500. Initially, we selected the single payment option; on January 13, 2025, we changed to the annual payment option, adjusting our ROU asset and lease liability approximately $600 for the modification. At June 30, 2025, our ROU asset totaled $4,936 and our lease liability totaled $4,871. Lease expense totaled $181 and $357 for the three and six months ended June 30, 2025, respectively. Lease expense totaled $143 and $241 for the three months and six months ended June 30, 2024, respectively.

Payments due under the above leases as of June 30, 2025, are as follows:

Due in 2025	$	471
Due in 2026		1,557
Due in 2027		1,616
Due in 2028		1,678
Due in 2029		1,065
Thereafter		4,231
		10,618
Less imputed interest		(2,610	)
Total	$	8,008

We have a service agreement for the use of an aircraft from a related party discussed in more detail in Note 4. We incurred approximately $380 and $756 during the three and six months ended June 30, 2025 compared to $315 and $686 incurred during the three and six months ended June 30, 2024.