NOTE 8 – OPERATING LEASES

The Company has two operating lease agreements for its warehouse and office facilities. The first lease expired February 28, 2023, and was extended beginning March 1, 2023 to February 28, 2026. The second lease expired August 31, 2023, and was extended beginning September 1, 2023 to August 31, 2026. The aggregate monthly lease payments range from $89 (year one), to $111 (year two), to $125 (year three), with an aggregate commitment of $3,896. The lease amendments to the two operating leases were considered new lease agreements and as a result, the Company recognized operating lease right-of-use assets and related operating lease liabilities of approximately $3,578 upon commencement of the new terms in 2023.

The Company also has a third lease on a month-to-month basis and is charged $25 per month.

The components of rent expense and supplemental cash flow information related to leases for the period are as follows:

SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION 

The supplemental balance sheet information related to leases for the period is as follows:

SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION 

Maturities of the Company’s lease liabilities are as follows (in thousands):

SCHEDULE OF MATURITIES OF LEASE LIABILITIES 

Rent expense for the three months ended June 30, 2024 and 2023 was $399 and $362, respectively. Rent expense for the six months ended June 30, 2024 and 2023 was $799 and $649, respectively.