Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

(6) Leases

The Company performs most of the final assembly, testing, packaging, warehousing and distribution at two production and warehouse facilities, totalling approximately 24,000 square feet, in Tijuana, Mexico. In November 2021, the Company entered into operating lease agreements extending each lease through November 30, 2023. The Company did not renew the lease and the lease expired on November 30, 2023. Lease payments total approximately $9 thousand per month. Rent expense was $101 thousand and $110 thousand for the years ended December 31, 2023 and 2022, respectively.

In May 2020, the Company signed a two-year lease agreement for 3,218 square feet of office space at 275 Turnpike Executive Park in Canton, MA. The agreement includes a one-time option to cancel the second year of lease with three months advance notice. The location is currently utilized by the Company’s research and development group. Rent expense was $55 thousand and $54 thousand for the year ended December 31, 2023, and 2022, respectively. On December 1, 2021, the Company executed an amendment to extend the lease from June 2022 to May 2024 with monthly payments of approximately $5 thousand.

The Company leases the facility that comprises its headquarters at 848 Elm Street in Manchester, NH. The facility lease agreement was effective from August 1, 2019 to July 31, 2021 and was renewed for a one-year extension until July 31, 2022. On July 18, 2022, the lease agreement was amended to a month-to-month lease arrangement and may be terminated by either party with a 60-day notice. The facility lease agreement provides for the lease of 2,656 square feet of office space. Rent expense was $42 thousand and $33 thousand for the years ended December 31, 2023 and 2022, respectively.

The components of lease costs were as follows:

	Years ended December 31,
	2023		2022
Operating lease costs	$	155,379	$	181,361
Short-term lease costs		41,550		29,740
Total lease costs	$	196,929	$	211,101

The weighted-average remaining lease term and discount rate were as follows:

	Years ended December 31,
	2023			2022
Operating leases:
Weighted average remaining lease term (years)		0.4			1.1
Weighted average discount rate		4.2	%		4.2	%

Supplemental cash flow information and non-cash activity related to our operating leases are as follows:

	Years ended December 31,
	2023		2022
Operating cash flow information:
Amounts included in measurement of lease liabilities	$	150,968	$	172,730
Non-cash activities:
ROU asset obtained in exchange for lease liability	$	-	$	103,914

The maturity of the Company’s operating lease liabilities as of December 31, 2023 were as follows:

Years ended December 31,
2024	$	22,794
Total lease payments	$	22,794
Less: imputed interest		(282	)
Present value of operating lease liabilities	$	22,512
Operating lease liabilities, current	$	22,512
Operating lease liabilities, noncurrent	$	-