The Company may be involved from time to time in legal proceedings, claims and assessments arising from the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. There are no material claims, assessments or litigation against the Company as of March 31, 2025.

The Company had a lease agreement for its corporate headquarters in Boston, Massachusetts, which expired in January 2025 and has a lease agreement for office space in Fort Worth, TX. which expires in December 2025. In August 2024, the Company entered into a lease agreement for a new corporate headquarters and manufacturing facility in Burlington, Massachusetts. The Company began relocating operations in December 2024 and completed the move in January 2025. The term of the lease is 88 months following the rent commencement date, which will be May 11, 2025. The Company has the option to extend the new lease for an additional five years, subject to certain conditions being satisfied. Under the new lease, the Company provided a security deposit to the landlord in the form of a letter of credit for $375,000. The Company has collateralized the letter of credit with cash in a separate bank account, which is accounted for as long-term restricted cash on the condensed consolidated balance sheet. Termination options are either not included, or have expired, for the Company’s other existing operating leases. Certain arrangements have discounted rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term.

As of March 31, 2025, operating lease assets were approximately $7,295,700. The amount and the maturity of the Company’s operating lease liabilities as of March 31, 2025, are as follows:


	March 31, 2025
2025	$	622,094
2026		1,168,752
2027		1,522,500
2028		1,584,678
Thereafter		6,511,404
Total future minimum lease payments		11,409,428
Less imputed interest		3,138,818
Total operating lease liabilities	$	8,270,610
Included in the condensed consolidated balance sheet:
Current operating lease liabilities	$	765,616
Non-current operating lease liabilities		7,504,994
Total operating lease liabilities	$	8,270,610

For the three months ended March 31, 2025 and 2024, the total lease cost is comprised of the following amounts:


	For the Three Months Ended March 31,
	2025		2024
Operating lease expense	$	401,809	$	89,496
Short-term lease expense		1,722		-
Total lease expense	$	403,531	$	89,496

The following summarizes additional information related to operating leases:


	March 31, 2025			December 31, 2024
Weighted-average remaining lease term (in years)		7.6			7.8
Weighted-average discount rate		8.6	%		8.6	%

The Company finances its directors and officers insurance policy, which requires the Company to make a down payment, followed by equal payments over a defined term. During the year ended December 31, 2023, the Company entered into a policy covering the twelve-month period ending June 2024. Under this financing arrangement, the Company made nine equal monthly payments of approximately $27,000, starting in July 2023. During the year ended December 31, 2024, the Company completed its payment obligation associated with its 2023-2024 policy and entered into a new policy covering the twelve-month period ending in June 2025. Under this new financing arrangement, the Company made a down payment of approximately $39,000 during the three months ended June 30, 2024, and is making nine equal monthly payments of approximately $39,000, starting in July 2024. Changes in the Company's supplier finance obligations were as follows:


	Three Months Ended
	March 31,
	2025		2024
Opening January 1	$	181,256	$	142,217
Payments		—		—
Expensed		98,508		80,109
Ending	$	82,748	$	62,108