Prepaid expenses and other current assets consist of the following (in thousands):


	March 31, 2026		December 31, 2025
Prepaid research and development expenses	$	—	$	578
Short-term Italian research and development refundable tax credit, net		1,284		—
Short-term VAT receivable		5,273		3,622
Prepaid insurance		405		635
Prepaid expenses		431		255
Other current assets		24		54
Total prepaid expenses and other current assets	$	7,417	$	5,144

The Company was eligible to obtain an R&D tax credit as companies in Italy that invest in eligible research and development activities, regardless of the legal form and economic sector in which they operate, can benefit from a R&D tax credit. Such tax credits can only be used to offset payments of certain taxes and contributions (e.g., social contributions, VAT payables, registration fees, income and withholding taxes and other tax-related items that companies usually pay monthly). During the three months ended March 31, 2026, the Company recorded $2.4 million of R&D tax credit, prior to any reserve, primarily due to the release of Italy related unrecognized tax benefits and the related tax payable. We recorded a reserve for estimated credits that were not probable of being used of $1.1 million based on forecasted utilization in Italy as of March 31, 2026. The Company recognized reductions to R&D expense of $0.3 million for the three months ended March 31, 2025.

The activity in the reserve for Italian research and development tax credit for the three months ended March 31, 2026 is as follows (in thousands):


	March 31, 2026
Beginning balance as of December 31, 2025	$	—
Reserve for Italian research and development tax credit		(1,083	)
Ending balance as of March 31, 2026	$	(1,083	)

Other assets consisted of the following (in thousands):


	March 31, 2026		December 31, 2025
Long-term VAT receivable	$	—	$	1,682
Equity investments in Lighthouse Pharmaceuticals, Inc.		78		78
Total other assets	$	78	$	1,760

Property and Equipment, Net

Property and equipment, net consist of the following (in thousands):


	March 31, 2026			December 31, 2025
Computer equipment	$	65		$	66
Computer software		31			32
Lab equipment		1,051			1,076
Leasehold improvement		37			38
Office furniture		222			227
Less: accumulated amortization and depreciation		(856	)		(844	)
Property and equipment, net	$	550		$	595

Accrued expenses and other current liabilities consist of the following (in thousands):


	March 31, 2026		December 31, 2025
Personnel expenses	$	871	$	3,138
Research and development expenses		1,752		6,966
Professional fees		464		181
Current portion of operating lease liabilities		113		115
Other		176		208
Total accrued expenses and other current liabilities	$	3,376	$	10,608

During the three months ended March 31, 2026, the Company entered into settlement agreements with vendors pursuant to which they relinquished amounts owed by the Company. This resulted in a $2.6 million gain on settlement of accounts payable, which is reflected in the condensed consolidated statements of operations and comprehensive income (loss) within research and development.

For the three months ended March 31, 2026 and 2025, the severance accrual activity was as follows (in thousands):


	For the Three Months Ended March 31,
	2026			2025
Beginning accrued severance	$	42		$	—
Incurred during the period		1,391			413
Severance paid during the period		(1,433	)		(66	)
Ending accrued severance	$	—		$	347

During the three months ended March 31, 2026 and 2025, the Company incurred severance costs related to personnel separation, reflecting payments made and accrued to departing employees.

Other long-term liabilities consist of the following (in thousands):


	March 31, 2026		December 31, 2025
Federal and state taxes payable	$	1,040	$	773
Foreign taxes payable		86		691
Other long-term liabilities		70		106
Other long-term liabilities	$	1,196	$	1,570