Operating lease Right-of-Use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes lease payments made, lease incentives, and initial direct costs incurred, if any.

The Company leases certain office space under long-term operating leases that expire at various dates through February 2031. The Company generally has options to renew lease terms on its facilities, which may be exercised at the Company's sole discretion.

In connection with the Company's acquisition of Nualtis on October 2, 2024, the Company assumed lessee rights to approximately 43,000 square feet of office, lab, and manufacturing spaces in Montréal, Canada with an initial expiration date of February 2026. The lease terms included an option to renew for an additional 5 years, which was able to be exercised at the Company's sole discretion.

In February 2025, the Company amended the lease agreements to exercise the aforementioned renewal option. As a result, the leases will now expire in February 2031. The Company adjusted the Operating lease right-of-use asset, net and lease liability by approximately $1.7 million to reflect the extended lease term. The amendment does not entitle the Company to lease additional space.

In May 2025, the Company sublet approximately 14,800 square feet of this office, lab, and manufacturing space in Montréal, Canada. The sublease term is for three and a half years and commenced in August 2025. The Company has no options to extend the term of the sublease. Under the terms of the head lease, the Company is not relieved of its obligation as lessee and will continue to make monthly rent payments. The Company performed a recoverability test of the sublease agreement upon inception by comparing the rental income under the sublease to the Company’s obligations under the head lease and noted no impairment existed on the head lease. The sublease provides for monthly payments of rent during the lease term. The base rent is currently $0.2 million per year, subject to an annual 3.0% increase in each subsequent year thereafter. Payments received under the sublease are recorded as a reduction to rent expense in the consolidated statements of operations and comprehensive loss.

In November 2025, the Company entered into a lease termination agreement with the landlord for its leased office space in Berlin, Germany that was scheduled to end in March 2028. The Company and the Landlord terminated the lease as of December 31, 2025, provided the following: (i) the landlord securing a tenant to lease the space beginning January 1, 2026 (the “Prospective Tenant”) (ii) the Company will leave certain fixed assets on the property that will be retained by Prospective Tenant, and (iii) the Company pays a $0.4 million termination fee within 10 business days of communication from the landlord that the Prospective Tenant is starting its lease January 1, 2026. The Company was notified that the landlord secured a Prospective Tenant to lease the space starting January 1, 2026 on December 23, 2025, left all required fixed assets in the space as outlined in the agreement, and made a $0.4 million payment to the landlord on January 5, 2026. As a result of the lease termination, the Company derecognized both the remaining ROU asset and lease liability and calculated a loss from lease termination equal to the difference between the ROU asset and lease liability plus the lease termination fee. The Company no longer has an obligation under its Berlin lease as of December 31, 2025. The lease termination resulted in the Company recognizing a $0.4 million loss recognized as a component of Other income (expense), net within its consolidated statements of operations. As part of the lease termination, the Company is entitled to receive its $0.1 million security deposit, which was received in January 2026.

The weighted-average remaining lease term for the Company’s operating leases as of December 31, 2025 was 5.2 years. The weighted-average discount rate for the Company’s operating leases as of December 31, 2025 was 9.1%.

ROU assets and lease liabilities related to the Company’s operating leases are as follows (in thousands):


	Balance Sheet Classification	December 31, 2025		December 31, 2024
Right-of-use assets	Operating lease right-of-use asset, net	$	1,846	$	1,334
Current lease liabilities	Current portion of lease liability	$	271	$	477
Non-current lease liabilities	Non-current portion of lease liability	$	1,801	$	732

Expenses related to leases are recorded on a straight-line basis over the lease term. The following table summarizes lease costs by component for the year ended December 31, 2025 and 2024 (in thousands):


		For the Year Ended December 31,
Lease Cost Components	Statement of Operations Classification	2025			2024
Operating lease cost	Operating expenses: General and administrative	$	347		$	387
Operating lease cost	Operating expenses: Research and development		517			125
Sublease income	Operating expenses: General and administrative		(56	)		—
Short-term lease cost	Operating expenses: General and administrative		147			137
Total lease cost		$	955		$	649

Future minimum commitments under all non-cancelable operating leases are as follows (in thousands):


Year Ended	Future Lease Commitments
2026	$	447
2027		495
2028		510
2029		526
2030		541
Thereafter		91
Total lease payments	$	2,610
Less: Imputed interest		(538	)
Present value of lease liabilities	$	2,072

Supplemental cash flow information related to the Company’s operating leases for the year ended December 31, 2025 and 2024 are as follows (in thousands):


	December 31, 2025		December 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	574	$	436
Right-of-use assets obtained in exchange for new operating lease liabilities		1,709		—