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LEASES

3 Months Ended

Mar. 31, 2025

9.	LEASES

The Company leases manufacturing and office space under an agreement classified as an operating lease. On November 10, 2021, the Company executed the second amendment to the lease agreement for its manufacturing and office space, which extends the lease agreement’s expiration date to April 30, 2026. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease. In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms.

The Company also leases office equipment in agreements classified as operating leases.

For the three months ended March 31, 2025 and 2024, the Company’s operating lease expense was $526,343 and $529,624, respectively.

Future minimum lease payments under non-cancellable operating leases as of March 31, 2025 were as follows:

For the Year Ending December 31,
Remainder of 2025	$	1,723,105
2026		850,276
2027		111,065
2028		9,228
2029		—
Total undiscounted operating lease payments		2,693,674
Less imputed interest		(112,546	)
Present value of operating lease payments	$	2,581,128

The following table sets forth the right-of-use assets and operating lease liabilities as of:

	March 31, 2025		December 31, 2024
Assets
Right-of-use assets, net	$	2,370,664	$	2,856,200

Liabilities
Current operating lease liabilities	$	2,206,562	$	2,162,154
Long-term operating lease liabilities		374,566		938,418
Total lease liabilities	$	2,581,128	$	3,100,572

The Company’s weighted average remaining lease term for its operating leases is 1.3 years as of March 31, 2025. The Company’s weighted average discount rate for its operating leases is 5.6% as of March 31, 2025.