Leases

3 Months Ended

Mar. 31, 2026

NOTE 9 – LEASES

Our lease agreements generally do not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. We used the incremental borrowing rate on March 31, 2026 and December 31, 2025 for all leases that commenced prior to that date. In determining this rate, which is used to determine the present value of future lease payments, we estimate the rate of interest we would pay on a collateralized basis, with similar payment terms as the lease and in a similar economic environment.

Our corporate headquarters is located in Mountain View, California where we lease approximately 5,810 square feet of laboratory and office space. On March 20, 2025, the Company entered an amendment to the Mountain View lease, extending the term through March 31, 2028. As of March 31, 2026, the Company is current on this lease.

We also lease approximately 25,000 square feet in Richmond, Virginia. The lease expires on August 31, 2026, subject to extension. As of March 31, 2026 the Company is in default on the Richmond lease in the amount of $159,375 due to an outstanding security deposit.

LS Biotech Eight Default

On May 10, 2024, the Company received written notice (the “2024 Default Notice”) from LS Biotech Eight, LLC (the “Landlord”), the Landlord of the Company’s CLIA-certified, CAP accredited, high complexity immune monitoring center in Richmond, Virginia, that the Company was in violation of its obligation to (i) pay Base Rent (as defined in the Lease) and Additional Rent (as defined in the Lease) in the amount of $431,182 in the aggregate, together with administrative charges and interest, as well as (ii) replenish the Security Deposit (as defined in the Lease) in the amount of $159,375, all as required under that certain Lease Agreement dated as of May 4, 2021 by and between the Landlord and the Company (the “Lease”). Pursuant to the Notice, the Landlord has demanded that a payment of $590,557 plus administrative charges and interest, which shall accrue at the Default Rate (as defined in the Lease) be made no later than May 17, 2024. As of March 31, 2026, the Company has made the payment of $431,182 and is in default on the lease in the amount of $159,375 due to an outstanding security deposit.

The Company is working with the Landlord to come to an amicable resolution. However, no assurance can be given that the parties will reach an amicable resolution on a timely basis, on favorable terms, or at all.

Lease Costs

	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
Components of total lease costs:
Operating lease expense	$	294,882	$	262,206
Total lease costs	$	294,882	$	262,206

Lease Positions as of March 31, 2026 and December 31, 2025

ROU lease assets and lease liabilities for our operating leases are recorded on the balance sheet as follows:

	March 31, 2026		December 31, 2025
Assets
Right of use asset – long term	$	966,701	$	1,204,526
Total right of use asset	$	966,701	$	1,204,526

Liabilities
Operating lease liabilities – short term	$	638,568	$	808,179
Operating lease liabilities – long term		288,890		342,904
Total lease liability	$	927,458	$	1,151,083

Lease Terms and Discount Rate as of March 31, 2026

Weighted average remaining lease term (in years) – operating leases			1.76
Weighted average discount rate – operating leases			8.00	%

Maturities of leases are as follows:

2026	$	530,003
2027		389,165
2028		98,005
Total lease payments	$	1,017,173
Less imputed interest		(89,715	)
Less current portion		(638,568	)
Total maturities, due beyond one year	$	288,890