LEASES

12 Months Ended

Dec. 31, 2024

Leases

LEASES

14. LEASES

Lawrenceville, New Jersey Lease

In August 2023, the Company renewed its Lawrenceville office lease for a 24-month agreement for 9,850 square feet with monthly rent payments of approximately $22,983 to $23,394.

Huntsville, Alabama Lease

In January 2023, the Company renewed its Huntsville facility lease for a 60-month lease agreement for 11,420 square feet with monthly rent payments of approximately $28,550 to $30,903.

The following is a table of the lease payments and maturity of the Company’s operating lease liabilities as of December 31, 2024:

	For the year ending December 31,
2025	$	543,009
2026		362,976
2027		370,235
2028 and thereafter		30,904
Subtotal future lease payments		1,307,124
Less imputed interest		(167,831	)
Total lease liabilities	$	1,139,293
Weighted average remaining life		2.7 years
Weighted average discount rate		9.98	%

The discount rate used was the Company’s incremental borrowing rate, which is 9.98%, as the Company could not determine the rate implicit in the lease.

For 2024, operating lease expense was $652,166 and cash paid for operating leases included in operating cash flows was $659,646. For 2023, operating lease expense was $646,633 and cash paid for operating leases included in operating cash flows was $644,593. Amortization expense was approximately $478,000 and $472,000 for the years ended December 31, 2024 and 2023, respectively.