XML 35 R20.htm IDEA: XBRL DOCUMENT v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 12 – Commitments and Contingencies

 

Lease Obligations

 

The Company leases administrative, R&D, sales and marketing and manufacturing facilities under non-cancellable operating leases and leases cancellable with one month notice. The Company expenses the cancelable leases in the period incurred in accordance with the practical expedient elected. During the year December 31, 2023, the Company amended two operating leases to extend the lease term and entered into two new operating leases. As a result, the Company recognized additional operating lease liabilities and corresponding operating right-of-use assets of $3,203,146.

 

For the year ended December 31, 2023, components of lease expense are summarized as follows:

 

  

Year Ended

December 31, 2023

 
Operating lease costs  $813,743 
Short-term lease costs   198,261 
Total lease costs  $1,012,004 

 

As of December 31, 2023, the maturities of the Company’s lease liabilities are as follows:

 

  

Year Ending

December 31,

 
2024  $996,676 
2025   1,018,383 
2026   714,630 
2027   300,591 
Thereafter   308,462 
Total lease payments   3,338,742 
Less: imputed interest   348,175 
Present value of operating lease liabilities   2,990,567 
Less: current portion   838,387 
Long-term portion  $2,152,180 

 

 

Other information related to operating leases was as follows:

 

  

Year Ended

December 31, 2023

 
Cash paid for operating leases included in operating cash flows  $954,013 
Remaining lease term of operating leases   3.7 years  
Discount rate of operating leases   6.2%

 

Litigation

 

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

 

The Company is a defendant in two class action claims and three derivative actions claiming that the Company promulgated false and misleading press releases to increase the price of our stock to improperly benefit the officers and directors of the Company. The plaintiffs demand compensatory damages sustained as a result of the Company’s alleged wrongdoing in an amount to be proven at trial. The Company is also a party to two civil actions, one in the US and the other in the United Kingdom. Each of the civil actions is based on breach of contract claims against the Company. The Company believes these lawsuits are without merit and intends to defend the cases vigorously. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in these cases. As of the date of this report, the Company does not believe it is probable that these cases will result in an unfavorable outcome; however, if an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to the Company’s results of operations in the period(s) in which any such outcome becomes probable and estimable.