Note 8 - Leases

6 Months Ended

Jun. 30, 2026

8. LEASES

The Company leases its office space for its corporate headquarters which has a remaining lease term of 6 months. In September 2024, the Company entered into an agreement to sublease 8,468 square feet of the 20,185 square feet of leased office space. The sublease term is from October 8, 2024 to December 31, 2026.

The Company’s recognized lease costs include:

	*Three Months Ended June 30,*				*Six Months Ended June 30,*
(in thousands)	*2026*		*2025*		*2026*		*2025*
Statements of Operations and Comprehensive Loss
Operating lease cost⁽¹⁾	$	147	$	159	$	297	$	322
Sublease income⁽¹⁾		52		52		103		103

⁽¹⁾	Operating lease cost and sublease income are recorded within general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss.

The following table presents information about our weighted average discount rate and remaining lease term as of:


	*June 30, 2026*			*December 31, 2025*
Weighted-average remaining lease term (months)		6.0			12.0
Weighted-average discount rate		7.6	%		7.6	%

The Company’s variable lease costs and short-term lease costs were not material.

The Company is obligated under a non-cancelable lease agreement providing for office space that expires on December 31, 2026. Maturities of lease payments under the non-cancelable lease were as follows:

(in thousands)	*June 30, 2026*
Remainder of 2026	$	315
Total lease payments		315
Less imputed interest		(6	)
Present value of lease liabilities	$	309

On April 16, 2026, the Company entered into a new lease for its corporate headquarters office with total square footage of 10,045 square feet. The lease has a term of 64 full calendar months commencing on the lease commencement date, which is expected to occur in the fourth quarter of 2026. Total rent obligations under the new lease are expected to be approximately $2.2 million.