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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 13 – Commitments and Contingencies

 

Lease Obligations

 

The Company leases administrative, R&D, sales and marketing and manufacturing facilities under non-cancellable operating leases.

 

For the years ended December 31, 2025 and 2024, respectively, components of lease expense are summarized as follows:

 

   2025   2024 
   Years Ended December 31, 
   2025   2024 
Operating lease costs  $1,037,497   $1,019,500 
Short-term lease costs   -    54,289 
Total lease costs  $1,037,497   $1,073,789 

 

As of December 31, 2025, the maturities of the Company’s lease liabilities are as follows:

 

   Years Ending December 31, 
2026  $714,630 
2027   300,591 
2028   308,462 
Thereafter   - 
Total lease payments   1,323,683 
Less: imputed interest   87,124 
Present value of operating lease liabilities   1,236,559 
Less: current portion   662,258 
Long-term portion  $574,301 

 

 

Other information related to operating leases was as follows:

 

   Year Ended December 31, 2025 
Cash paid for operating leases included in operating cash flows  $1,045,694 
Remaining lease term of operating leases   2.3 
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 one class action suit claiming that the Company overstated the demand for its Logix Smart COVID-19 test and that the plaintiffs suffered losses when the Company’s stock dropped after the Company disclosed its financial results. 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 three civil actions, two 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 is defending 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.