4. Leases

The Company leases space for various corporate and research purposes and accounts for lease arrangements in accordance with the provisions of ASC 842, Leases. The Company calculates the lease liability as the present value of the lease’s cash flows using the interest rate implicit in the lease, if determinable. If the rate implicit in the lease is not determinable, the Company uses its incremental borrowing rate. The incremental borrowing rate is defined as the rate the Company would have to pay to borrow on a collateralized basis over the lease term. The Company has elected the accounting policy election available under ASC 842 to not record a lease liability for leases with a term of less than one year.

On March 1, 2024, the Company commenced an operating lease for a laboratory facility located at 17 Briden Street, Worcester, Massachusetts, which expired on February 28, 2026. The Company currently maintains shared office space at LifeSciences PA located at 411 Swedeland Road, King of Prussia, PA for access to full working space during normal business hours of operations for a monthly fee of $300.  This arrangement is cancellable at any time.

Operating lease costs included in operating expense were approximately $900 and $8,400 for the three months ended June 30, 2026 and 2025, respectively. Operating lease costs included in operating expense were approximately $1,800 and $16,800 for the six months ended  June 30, 2026 and 2025, respectively.

There was no cash paid for the amounts included in the measurement of the operating lease liability on the Company’s condensed consolidated balance sheets and included within changes in the lease liability in the operating activities of the Company’s condensed consolidated statements of cash flows for the Company’s former corporate headquarters for the three months ended  June 30, 2026 and 2025.