NOTE 8 – OPERATING LEASES

The Company has two operating lease agreements for its warehouse and office facilities. An amendment dated January 31, 2023, to one of its operating leases that expired on February 28, 2023, extends that lease term for three years commencing March 1, 2023 through February 28, 2026. Lease payments total $2,596, with monthly lease payments ranging from $58 beginning in March 2023, to $74 beginning in March 2024, to $84 from March 2025 to February 2026. The lease amendment was considered a new lease agreement and as a result, the Company recognized an operating lease right-of-use asset and related operating lease liability of $2,392.

The Company’s second operating lease expires in August 2023. In May 2023, the Company signed an amendment to the second lease extending the term to August 2026. Lease payments will total $1,304, with monthly lease payments ranging from $31 beginning in September 2023, to $37 beginning in September 2024, to $41 from September 2025 to August 2026. The lease amendment to the Company’s second operating lease is also considered a new lease agreement and as a result, the Company will recognize an operating lease right-of-use asset and related operating lease liability of approximately $1,184 upon commencement of the new term.

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 six months ended June 30, 2023 and 2022 was $649 and $476, respectively.