7) Right-of-use Assets

The Company determines if an arrangement contains a lease at inception. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The Company utilized a portfolio approach in determining the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates.

Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient noted above. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred.

The Company’s principal facility is located in Pleasanton, CA. Lease rental for the quarter ended March 31, 2026, was $19 and whereas rent expenses for the quarter ended March 31, 2025 were $43. Depreciation expense for the ROU asset for the quarter ended March 31, 2026 was $5.

In addition, the Company acquired right-of-use assets and lease liability as part of the business combination (see note 5[B] for details). The Company acquired right-of-use assets with a cost of $3,879 and accumulated depreciation of $2,747 as part of the business combination (see note 5[B] for details). The lease relates to an office building located at Calle Rufino González 21, 28037 Madrid and a vehicle. The lease terms are 84 months for the building and 48 months for the vehicle. The leases were measured using discount rates of 1.50% for building and 6.99% for vehicle, resulting in lease liabilities of $3,823 and $64, respectively as of March 31, 2026. Lease rental and depreciation expense for the quarter ended March 31, 2026, were $114 and $137 respectively.

ROU Asset:

* Includes operating right-of-use assets acquired as part of business combination as explained in the note above.

Lease liability:

Future minimum lease obligations under our non-cancellable lease agreement as of March 31, 2026, are as follows: