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| Leases |
Note 10. Leases
Operating lease
We have a new lease contract entered June 1, 2025 which includes both our office facility and warehouse space that expires May 31, 2028. The monthly “Base Rent” is $12,232 and $13,150. The Base Rent is increased by 3.0% each year.
We had a lease contract entered June 1, 2024 which includes both our office facility and warehouse space that expired May 31, 2025. The monthly “Base Rent” was $11,876 and $12,767.
We recognized total lease expense, primarily related to our operating leases, on a straight-line basis in accordance with ASC 842.
As of September 30, 2025 and December 31, 2024, the Company recorded a refundable security deposit of $10,000 for its warehouse space and is included in other assets on the balance sheet.
The operating lease expense were as follows:
Supplemental balance sheet information related to operating leases was as follows:
Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year as of September 30, 2025, were as follows:
Sublease
On August 1, 2021, the Company entered into a sublease agreement with its related party and a principal shareholder (“Sublandlord”), whereby the Company subleases certain offices, rooms and shared use of common spaces located at 150 Sykes Creek Parkway, Merritt Island, FL. The sublease agreement is a month-to-month lease and may be terminated with 30 days’ notice to the Sublandlord. The monthly rent shall be $4,618.03 from February 1, 2024 to January 31, 2025, $4,756.57 from February 1, 2025 to January 31,2026 and $4,899.27 from February 1, 2026 to January 31, 2027. A common area maintenance fee (CAM) will be charged in addition to the monthly rent. During the nine months ended September 30, 2025 and 2024, the Company recorded $61,816 and $58,780 directly related to this short-term month to month lease to lease expense.
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