v3.26.1
Note 7 - Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

7.

Commitments and Contingencies

 

Leases

 

The Company has evaluated its leases under ASC 842, Leases, and determined that it has one lease that is classified as an operating lease. The classification of this lease is consistent with the Company’s determination under the previous accounting standard.

 

The terms of the Company’s only corporate office and laboratory facility (the “Facility”) lease were modified effective September 27, 2024 through the execution of a new lease.  The modified terms extended the non-cancelable lease term through May 2031. The modified terms also included the right to use an additional 10,724 square feet that became available for the Company’s use in May 2025. The classification and incremental borrowing rate for the lease did not change as a result of this lease modification. Right-of-use assets obtained in exchange for the new operating lease liabilities due to the lease modification were $9.9 million for a total right-of-use assets as of March 31, 2026 of $8.7 million. The remaining lease term of the Facility lease is 5.2 years as of March 31, 2026. The Company has $568 thousand of restricted cash associated with an irrevocable letter of credit required by the landlord to enter into this lease.

 

Lease costs related to the Facility were $0.5 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively. Cash payments related to the Facility were $0.2 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively.

 

The table below presents the undiscounted cash flows for the lease term. The undiscounted cash flows are reconciled to the operating lease liabilities recorded on the condensed consolidated balance sheet (in thousands):

 

Remainder of 2026

   $ 1,334  

Years ending December 31,

        

2027

     2,204  

2028

     2,249  

2029

     2,294  

2030

     2,356  

2031

     995  

Total minimum lease payments

     11,432  

Less: amount of lease payments representing interest

     (1,641 )

Present value of future minimum lease payments

     9,791  

Less: operating lease obligations, current portion

     (1,373 )

Operating lease obligations, long-term portion

   $ 8,418  

 

 

Defined Contribution Plan

 

The Company has a 401(k) defined contribution plan (the “401(k) Plan”) for substantially all its employees. Eligible employees may make pre-tax or post-tax (Roth) contributions to the 401(k) Plan up to statutory limits. The Company matches employee contributions to the plan up to 6% of salary. The Company made matching contributions of $0.2 million and $0.1 million for the three months ended March 31, 2026 and 2025 respectively.