The Company leases its principal office space from SMS Lakewood, LLC (“SMS”), an entity that is an affiliate of Granite Peak Resources, LLC, the Company’s majority stockholder, and therefore an affiliate of the Company’s Chief Executive Officer. Effective April 1, 2025, the Company entered into a three-year non-cancelable operating lease with SMS for approximately 409 square feet of office space located at 12567 West Cedar Drive, Suite 104, Lakewood, Colorado. The lease term extends through March 31, 2028 and does not include renewal options. Base monthly rent under the lease is $579, plus approximately $110 per month for common area maintenance (“CAM”) and taxes, for a total monthly payment of approximately $690. The lease is classified as an operating lease under ASC 842. The Company used an 8% incremental borrowing rate to calculate the present value of lease payments, as the rate implicit in the lease was not readily determinable.

As of March 31, 2026, the operating lease ROU asset related to the SMS office lease was $15,363, and the associated operating lease liabilities totaled $16,368, of which $7,654 was classified as current and $8,714 was classified as long-term. The excess of the lease liability over the ROU asset primarily reflects prepaid rent and initial direct costs, which are amortized over the lease term. 

For the three months ended March 31, 2026, the Company recognized total lease cost of approximately $2,271, consisting of $1,921 of amortization of the ROU asset and $350 of interest on the lease liability. Lease cost is included in general and administrative expenses.

The following table presents the undiscounted future lease payments for the related-party operating lease and a reconciliation to the operating lease liability as of March 31, 2026:

All lease obligations above relate to a related-party operating lease. The Company had no other operating or finance lease commitments as of March 31, 2026.