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LEASES

3 Months Ended

Mar. 31, 2025

LEASES

LEASES

NOTE 7. LEASES

In April 2018, we entered into a 10-year lease agreement for a new 9,000-square-foot facility that contains office, warehouse, lab and research and development space in Frederick, Maryland. The lease agreement commenced in December 2018 when the property was ready for occupancy. The agreement provided for annual rent of $143,460, an escalation clause that increases the rent 3% year over year, a landlord tenant improvement allowance of $405,000 and additional landlord work as discussed in the lease agreement. We took occupancy of the property on December 17, 2018, and the lease was amended in March 2019 to provide for a 4-month rent holiday and a commencement date of April 1, 2019. A 7% discount rate was determined using our incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

The balances for our operating lease where we are the lessee are presented as follows within our condensed consolidated balance sheet:

Operating leases:		March 31, 2025 (Unaudited)				December 31, 2024
Assets:
Operating lease right-of-use asset		$	380,791			$	399,254
Liabilities:
Current Portion of Long-Term Operating Lease		$	132,660			$	129,132
Long-Term Operating Lease, Net of Current Portion			479,357				513,395
Total Right of Use Liability		$	612,017			$	642,527

The components of lease expense are as follows and are included within general and administrative expense on our condensed consolidated statement of operations:

		For the Three Months Ended March 31, 2025  (Unaudited)				For the Three Months Ended March 31, 2024  (Unaudited)
Operating lease expense		$	39,329			$	39,329

Other information related to leases where we are the lessee is as follows:

		March 31, 2025 (Unaudited)				December 31, 2024
Weighted-average remaining lease term:
Operating leases		3.75 years				4.00 years
Discount rate:
Operating leases			7.00	%			7.00	%

Supplemental cash flow information related to leases where we are the lessee is as follows:

		For the Three Months Ended March 31, 2025  (Unaudited)				For the Three Months Ended March 31, 2024  (Unaudited)
Cash paid for amounts included in the measurement of lease liabilities:		$	41,578			$	40,367

As of March 31, 2025, the maturities of our operating lease liability are as follows:

Year Ended:		Operating Lease
April 1 – December 31, 2025		$	128,474
December 31, 2026			175,153
December 31, 2027			180,408
December 31, 2028			185,819
December 31, 2029			33,751
Total minimum lease payments			703,605
Less:  Interest			91,588
Imputed value of lease obligations			612,017
Less: Current portion			132,660
Long-term portion of lease obligations		$	479,357

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- References

No definition available.

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- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 840
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/840/tableOfContent

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