7. Leases

The Company leases office space under noncancelable operating leases.

Short-term Office Leases

Starting in November 2025, the Company utilizes office space via a 12-month operating lease which includes no long-term obligation. Rent related to short-term leases is recorded on a monthly basis as the expense is incurred and no liability is recognized on the balance sheets related to these leases as the Company has elected the short-term lease practical expedient.

Long-term Office Lease

In November 2024, the Company entered into a 13-month noncancellable operating lease for office space. Upon lease commencement, the Company recognized a ROU asset and a corresponding operating lease liability. The lease was not renewed upon completion of the 13-month term (ending November 30, 2025) and the ROU asset and associated lease liability were $0 as of December 31, 2025.

Because the discount rate implicit in the lease was not readily determinable, the Company estimated its incremental borrowing rate using information about the Company’s credit profile, market yields on debt instruments with similar maturities, and the term of the lease. The Company applied this incremental borrowing rate of 7.5 percent in measuring the lease liability at the commencement date.

Lease cost and cash flow information

Lease cost for the three months ended March 31, 2026 and 2025 consisted of the following:

Schedule of Lease Cost  

Lease cost is included within general and administrative expenses in the condensed statements of operations.

Cash paid for amounts included in the measurement of operating lease liabilities was $0 and $1,811 for the three months ended March 31, 2026 and 2025, respectively.