NOTE 4 - LEASES

The Company leases a facility that contains office, warehouse, lab and R&D space in Ft. Myers Florida. Rent was $2,261 per month for calendar 2023, and $2,200 per month for calendar 2024. The lease expired December 31, 2024.

The Company leases office space for its headquarters in Bloomfield Hills, Michigan. Rent was $7,466 for the months of January 2023 through November 2023, and $7,668 for the months of December 2023 through the lease term, November 2024. The Company entered into a month-to-month rental agreement, paying $7,668 per month, for December 1, 2024, through January 10, 2025, when the Company moved to a different facility.

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

Operating leases:

The components of lease expense are as follows within our consolidated statement of operations:

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

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

As of December 31, 2024, the Company has no remaining operating lease liabilities.

On September 13, 2024, the Company entered into a 63-month lease agreement for office space in Troy, Michigan. On January 6, 2025, the Company moved its headquarters to this location. The lease agreement commenced on January 1, 2025, and ends on March 31, 2030. The lease agreement provided for a total rent of $298,135 over the period. Occupancy of the property commenced on January 1, 2025. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The parties negotiated a three-month rent holiday from January 1, 2025, through March 31, 2025. Rent is $4,681 per month from April 1, 2025, to March 31, 2026, $4,820 from April 1, 2026, to March 31, 2027, $4,964 from April 1, 2027, to March 31, 2028, $5,113 from April 1, 2028, to March 31, 2029, and $5,267 from April 1, 2029, to March 31, 2030. The Company has reviewed the terms of the agreement and will classify the lease as an operating lease under ASC 842.

On January 21, 2025, the Company entered into a 36-month lease agreement for a facility that contains office, warehouse, lab and R&D space in Ft. Myers, Florida. The lease agreement commenced on January 1, 2025, and ends on December 31, 2027. The lease agreement provided for a total rent of $111,817 over the period. Occupancy of the property commenced on January 1, 2025. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Rent is $3,000 per month from January 1, 2025, to December 31, 2025, $3,105 from January 1, 2026, to December 31, 2026, and $3,213 from January 1, 2027, to December 31, 2027. The Company has the option to extend the lease for one three-year period during which the monthly lease rate will increase at a rate of 3.5% per year. The Company has reviewed the terms of the agreement and will classify the lease as an operating lease under ASC 842.