v3.25.2
Note 7 - Leases
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

7. Leases

 

The Company leases laboratory and office space and certain equipment with a remaining term of one year.

 

On August 12, 2024, the Company entered into the HQ Lease, an operating lease agreement for laboratory and office space in Holliston, MA, with an initial three-year term from September 1, 2024 through August 31, 2027. The Company accounts for the HQ Lease in accordance with ASC Topic 842, Leases. The Company recorded approximately $323,000 as a right-of-use asset and a corresponding operating lease liability on the Company’s condensed consolidated balance sheets upon the accounting commencement date on September 1, 2024. The lease liability was measured at the accounting commencement date utilizing a 13.3% discount rate. 

 

The HQ Lease contains escalating payments during the lease term. Upon execution of the HQ Lease, the Company paid a security deposit, which will be held in escrow and credited at the termination of the lease. As of June 30, 2025, a security deposit of approximately $14,000 was included in long-term prepaid contracts on the Company’s condensed consolidated balance sheet related to the HQ Lease.

 

All of the Company’s leases qualify as operating leases. The following table summarizes the presentation of the Company’s operating leases in its condensed consolidated balance sheets:

 

   

June 30,

  

December 31,

 
 

Balance Sheet Classification

 

2025

  

2024

 
          

Assets:

         

Operating lease assets

Right-of-use assets, net

 $245  $293 

Liabilities:

         

Current portion of operating lease liability

Current portion of operating lease liability

  104   95 

Operating lease liability, net of current portion

Operating lease liability, net of current portion

  145   199 

Total operating lease liability

  $249  $294 

 

The Company recorded operating lease expense in the following categories in its condensed consolidated statements of operations and comprehensive loss:

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2025

  

2024

  

2025

  

2024

 
  

(in thousands)

  

(in thousands)

 

Research and development

 $11  $12  $22  $28 

Sales and marketing

     9      9 

General and administrative

  22   7   44   18 

Total

 $33  $28  $66  $55 

 

Cash paid included in the computation of the operating lease assets and lease liability during the three and six months ended June 30, 2025 amounted to approximately $32,000 and $64,000, respectively.  Cash paid included in the computation of the operating lease assets and lease liability during the three and six months ended  June 30, 2024 amounted to approximately $28,000 and $55,000, respectively.

 

The weighted average remaining lease term and weighted average discount rate of the Company’s operating leases are as follows:

 

  

As of June 30,

 
  

2025

  

2024

 

Remaining lease term (in years)

  2.17   1.70 

Discount rate

  13.29%  8.19%

 

The minimum lease payments for future years are as follows:

 

  

As of

 
  

June 30,

 
  

2025

 
  

(in thousands)

 

2025

 $65 

2026

  133 

2027

  90 

Total lease payments

  288 

Less: imputed interest

  (39)

Present value of operating lease liability

 $249