Quarterly report [Sections 13 or 15(d)]

LEASES

LEASES

3 Months Ended

Mar. 31, 2025

NOTE 3 - LEASES

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.

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

Operating leases:

	For the Three Months Ended		For the Year Ended
Assets:	March 31, 2025		December 31, 2024
Operating lease right-of-use assets	$	300,731	$	-

Liabilities:
Current portion of long-term operating leases	$	60,793	$	-
Long-term operating leases, net of current portion		254,454		-
Total operating lease liabilities	$	315,247	$	-

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

For the Three Months Ended

March 31,

2025

March 31,

2024

Operating lease expense

23,515

27,236

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

	For the			For the
	Three Months Ended			Year Ended
	March 31, 2025			December 31, 2024
Weighted-average remaining lease term:
Operating leases	4.31 Years			0.0 Years

Discount rate:
Operating leases		11.00	%		11.00	%

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

	For the		For the
	Three Months Ended		Three Months Ended
	March 31, 2025		March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:	$	8,999	$	29,984
Non-cash investment in ROU asset	$	315,571	$	-

As of March 31, 2025, the maturities of our operating lease liabilities are as follows:

Year Ended:	Operating Lease
December 31, 2025	$	69,123
December 31, 2026		94,676
December 31, 2027		97,695
December 31, 2028		60,910
December 31, 2029		62,747
December 31, 2030		15,802
Total minimum lease payments		400,953
Less: Interest		(85,706	)
Present value of lease obligations		315,247
Less: Current portion		(60,793	)
Long-term portion of lease obligations	$	254,454