We are subject to litigation, claims, investigations, and audits arising from time to time in the ordinary course of our business. When applicable, we record accruals for contingencies when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. While the outcome of lawsuits and other proceedings against us cannot be predicted with certainty, in our opinion, individually or in the aggregate, no such lawsuits are expected to have a material effect on our consolidated financial position or results of operations.

In the opinion of management, after consultation with legal counsel, the ultimate disposition of any such matters as of March 31, 2024, are not expected to have a materially adverse effect on the consolidated financial position or results of operations of the Company.

The Company has made certain indemnities, under which it may be required to make payments to an indemnified party, in relation to certain transactions. The Company indemnifies its directors, officers, employees, and agents to the maximum extent permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has indemnified its lessor for certain claims arising from the use of the facilities. The duration of the indemnities varies, and in many cases is indefinite. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets.

The Company leases its offices, manufacturing, and warehouse facility in San Diego County under a non-cancelable operating lease. Our corporate headquarters are in a leased space comprising of approximately 29,342 square feet in Escondido, California under a lease that was last modified and extended in September 2023 and expires in August 2030. The Company also leases a 3,208 square foot facility in Salt Lake City, Utah, under a lease expiring in June 2025, that houses our Ion software development team. Additionally, we lease a 1,632 square foot facility located in Anaheim, California, with the lease expiring in June 2025. Bressner leases space in Germany comprising of 11,836 square feet on a month-to-month basis. For the three month periods ended March 31, 2024 and 2023, rent expense was $174,415 and $137,569, respectively.

Other information related to leases as of the three month periods ended March 31, 2024 and 2023, was as follows:


	For the Three Months Ended March 31,
	2024		2023
Operating lease expense	$	174,415	$	137,569
Total lease expense	$	174,415	$	137,569

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	111,784	$	160,348

Right-of-use assets obtained in exchange for new operating lease liabilities	$	-	$	-
Operating lease obligation for new operating leases	$	-	$	-

Weighted-average remaining lease term - operating leases	70.4 months		17.5 months
Weighted-average discount rate - operating leases	13.6%		12.7%

The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2024:


Year	Operating Leases
Remaining 2024	$	502,574
2025		470,271
2026		408,282
2027		403,771
2028		419,922
Thereafter		735,528
Total lease payments		2,940,348
Less: Amount representing interest		(833,127	)
Present value of lease payment		2,107,221
Less: current portion of operating lease obligation		(413,679	)
Operating lease obligation, net of current portion	$	1,693,542

In the normal course of business, the Company may enter into purchase commitments for inventory components to be delivered based upon non-cancellable, pre-established, delivery schedules that are over a period that may exceed one year. Total non-cancellable purchase orders as of March 31, 2024, were $5,708,712.

During the three month periods ended March 31, 2024 and 2023, the Company had one customer, in each period, that accounted for (in the aggregate) approximately 16% and 29%, respectively, of revenue for which each represented greater than 10% of our consolidated quarterly revenue.

As of March 31, 2024 and December 31, 2023, the Company had one and two customers, respectively, in each period that accounted for (in the aggregate) approximately 12% and 22%, respectively, of trade accounts receivables for which each of such customer’s balances represented greater than 10% of our consolidated trade accounts receivable balance.

During the three month periods ended March 31, 2024 and 2023, the Company had one and two vendors, respectively, in each period that accounted for (in the aggregate) approximately 34% and 18%, respectively, of purchases from vendors/suppliers for which each represents greater than 10% of our consolidated purchases.