ACORN ENERGY, INC.

OmniMetrix’s activities are currently conducted in approximately 21,000 square feet of office and production space in the Hamilton Mill Business Park located in Buford, Georgia, under a lease that was amended on June 20, 2025 to extend the lease term through November 30, 2030. The annual operating lease expense was $184,000 in 2025 and $129,000 in 2024. For 2026, the annual operating lease expense will be $216,000 for the year ending through December 31, 2026. OmniMetrix is currently utilizing only a portion of these leased facilities.

On July 6, 2021, the Company entered into an agreement with King Industrial Realty, Inc. to sublease from the Company 1,900 square feet of the Company’s 21,000 square feet office and production space in the Hamilton Mill Business Park located in Buford, Georgia. This sublease was amended on August 15, 2025 to extend the term through September 30, 2028 and to provide a monthly sublease payment of $3,374 plus annual escalators (the average monthly sublease payment in 2025 was $2,790), which includes the base rent plus a pro-rata share of utilities, property taxes and insurance. Fifty percent of any excess rent received above the per square foot amount that the Company pays will be remitted to the Company’s landlord less the allocation of any shared expenses and leasehold improvements specific to the sublease. After the offset of the investment in leasehold improvements and other expenses related to the sublease, the total amount payable to our landlord under the sublease was $8,295 for the year ended December 31, 2025, and $6,680 for the year ended December 31, 2024.

Below are the future payments (in thousands) expected to be received from King Industrial Realty, Inc. under the sublease. The Company expects to remit fifty percent of these amounts net of the annual service cost of approximately $2,600 to our landlord.