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LEASES

6 Months Ended

Jun. 30, 2025

LEASES

The Company leases manufacturing and office space under an agreement classified as an operating lease. The company entered into an amendment to the lease agreement for its operating facility on April 15, 2025 that extends the term of the lease until April 30, 2031. The lease agreement does not include any renewal options. 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 six months ended June 30, 2025 and 2024, the Company’s operating lease expense was $1,189,958 and $1,059,249, respectively. For the three months ended June 30, 2025 and 2024, the Company’s operating lease expense was $594,979 and $529,624, respectively.

Future minimum lease payments under non-cancellable operating leases as of June 30, 2025 were as follows:

For the Year Ending December 31,
Remainder of 2025	$	1,152,266
2026		2,304,533
2027		2,336,077
2028		2,300,990
2029		2,360,515
Thereafter		3,249,720
Total undiscounted operating lease payments		13,704,101
Less imputed interest		(3,249,092	)
Present value of operating lease payments	$	10,455,009

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

	June 30, 2025		December 31, 2024
Assets
Right-of-use assets, net	$	10,220,405	$	2,856,200

Liabilities
Current operating lease liabilities	$	1,367,604	$	2,162,154
Long-term operating lease liabilities		9,087,405		938,418
Total lease liabilities	$	10,455,009	$	3,100,572

The Company’s weighted average remaining lease term for its operating leases is 5.7 years as of June 30, 2025. The Company’s weighted average discount rate for its operating leases is 9.5% as of June 30, 2025.