Note 7 - Leases

3 Months Ended

Mar. 31, 2026

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 March 31, 2026, 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:

		*March 31,*		*December 31,*
	*Balance Sheet Classification*	*2026*		*2025*

Assets:
Operating lease assets	Right-of-use assets, net	$	168	$	195
Liabilities:
Current portion of operating lease liability	Current portion of operating lease liability		118		113
Operating lease liability, net of current portion	Operating lease liability, net of current portion		55		86
Total operating lease liability		$	173	$	199

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

	*Three Months Ended*
	*March 31,*
	*2026*		*2025*
	(in thousands)
Research and development	$	22	$	20
General and administrative		11		13
Total	$	33	$	33

Cash paid included in the computation of the operating lease assets and lease liability during the three months ended March 31, 2026 and 2025 amounted to approximately $33,000 and $32,000, respectively.

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

	*As of March 31,*
	*2026*			*2025*
Remaining lease term (in years)		1.42			2.42
Discount rate		13.29	%		13.29	%

The minimum lease payments for future years are as follows:

	*As of*
	*March 31,*
	*2026*
	(in thousands)
2026	$	100
2027		90
Total lease payments		190
Less: imputed interest		(17	)
Present value of operating lease liability	$	173