LEASES

3 Months Ended

Mar. 31, 2024

Leases

LEASES

 9. LEASES

The Company leases manufacturing and office space under an agreement classified as an operating lease. On November 10, 2021, the Company executed the second amendment to the lease agreement for its manufacturing and office space, which extends the lease agreement’s expiration date to April 30, 2026. The lease agreement does not include any renewal options. The agreement provides for an initial monthly base amount plus annual escalations through the term of the lease. In addition to the monthly base amounts in the lease agreement, the Company is required to pay real estate taxes and operating expenses during the lease terms.

The Company also leases office equipment in agreements classified as operating leases.

For the three months ended March 31, 2024 and 2023, the Company’s operating lease expense was $529,624 and $546,082, respectively.

Future minimum lease payments under non-cancellable operating leases as of March 31, 2024 were as follows:

For the Year Ending December 31,
Remainder of 2024	$	1,680,674
2025		2,283,354
2026		850,276
2027		111,065
2028		9,228
Total undiscounted operating lease payments		4,934,597
Less imputed interest		(315,922	)
Present value of operating lease payments	$	4,618,675

The following table sets forth the right-of-use assets and operating lease liabilities as of: 

	March 31, 2024		December  31, 2023
Assets
Right-of-use assets, net	$	4,277,724	$	4,740,193
Liabilities
Current operating lease liabilities	$	2,037,547	$	1,999,058
Long-term operating lease liabilities		2,581,128		3,100,571
Total lease liabilities	$	4,618,675	$	5,099,629

The Company’s weighted average remaining lease term for its operating leases is 2.2 years as of March 31, 2024. The Company’s weighted average discount rate for its operating leases is 5.45% as of March 31, 2024.