Note 11 - Leases

3 Months Ended

Mar. 31, 2026

Note 11 – Leases

Operating Leases

The Company had the following office and laboratory facility leases during the periods covered by this report:

•

In April 2016, UPL signed an addendum to its November 2014 lease agreement for the Company’s offices located in Israel, in order to increase the office space rented and to extend the rent period until 2019. In March 2019, UPL utilized the agreement extension option and extended the rent period for an additional three years until August 2022. In July 2022, UPL signed a lease extension agreement for the Company’s offices located in Israel, extending the term of the lease through September 2025, and, effective as of June 2025, the lease was renewed through September 2028. The Company's remaining contractual obligation under this lease is approximately $1.0 million as of March 31, 2026.

•

In November 2019, UPI entered into a new lease agreement for an office in Princeton, New Jersey, which the Company now uses as its headquarters. The lease commencement date was November 29, 2019 with an original lease term of 38 months, expiring January 31, 2023. In June 2022, the Company signed a lease extension for the Princeton office, extending the term of the lease through January 31, 2026. In August 2025, the Company signed an additional lease extension for the Princeton office, extending the term of the lease through April 30, 2031. The Company concluded that the lease renewal option in the agreement is not reasonably certain to be exercised. The modification did not result in a separate lease under ASC 842. As a result, the Company remeasured its lease liability and corresponding right-of-use asset using its incremental borrowing rate at the modification date. The Company’s remaining contractual obligation under this lease is approximately $3.0 million as of March 31, 2026.

Finance Leases

•

In July 2024, UPI entered into a new master lease agreement for vehicles, primarily for use by employees in sales, field services, and roles that require regular travel. Under the terms of the master lease agreement, the Company will lease various vehicles from time to time with an initial lease term of 48 months commencing on the delivery date of the vehicle with an option to continue month-to-month for an unlimited period of time. Lease payments are fixed, with payments due monthly in advance, and include charges for depreciation, maintenance, and other related services. At the end of each lease term, the Company is required to make a terminal rental adjustment based on the difference between the vehicle’s contractual book value and its estimated wholesale value, which may result in additional payments or refunds. The Company may also be required to pay additional rent if the vehicle exceeds certain mileage limits or shows abnormal wear and tear during the lease term. The Company’s remaining contractual obligation relating to the leases entered into under this master agreement is approximately $5.5 million as of March 31, 2026.

In addition, the Company has other operating office equipment and vehicle leases. The Company’s operating leases may require minimum rent payments, contingent rent payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. The Company’s leases do not contain any residual value guarantees or material restrictive covenants. The Company’s leases expire at various dates from 2026 through 2031, with varying renewal and termination options.

The components of lease cost for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

	*Three Months Ended*
	*March 31,*
	*2026*		*2025*
Finance lease cost:
Amortization of right-of-use assets	$	427	$	217
Interest on lease liabilities		161		107
Operating lease cost		238		226
Variable lease cost		55		13
Total lease cost	$	881	$	563

The amounts recognized as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

	*March 31,*		*December 31,*
	*2026*		*2025*
Finance lease right-of-use assets	$	5,009	$	5,376
Operating lease right-of-use assets		2,931		3,080
Finance long-term lease liabilities		3,161		3,475
Operating long-term lease liabilities		2,485		2,646
Other current liabilities related to finance leases		1,327		1,274
Other current liabilities related to operating leases		589		481

As of March 31, 2026, no impairment losses have been recognized.

Supplemental information related to leases for the three months ended March 31, 2026 and 2025 is as follows (in thousands, except for lease terms and discount rate amounts):

	*Three Months Ended*
	*March 31,*
	*2026*			*2025*
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	321		$	688
Operating cash flows from operating leases	$	143		$	220
Right-of-use assets obtained in exchange for new finance lease liabilities	$	60		$	2,045
Weighted-average remaining lease term of finance leases (in years)		2.05			3.58
Weighted-average remaining lease term of operating leases (in years)		4.32			0.78
Weighted-average discount rate of finance leases		13.82	%		13.82	%
Weighted-average discount rate of operating leases		11.82	%		10.23	%

As of March 31, 2026, maturities of lease liabilities were as follows (in thousands):

	*Finance Leases*
Years ending December 31,
Remainder of 2026	$	1,399
2027		1,866
2028		1,822
2029		410
2030 and there after		1
Total future minimum lease payments		5,498
Less: Interest		(1,009	)
Present value of lease liabilities	$	4,489

	*Operating*
	*Leases*
Years ending December 31,
Remainder of 2026	$	673
2027		963
2028		880
2029		603
2030		613
2031 and there after		206
Total future minimum lease payments		3,938
Less: Interest		(864	)
Present value of lease liabilities	$	3,074