Leases

6 Months Ended

Jun. 30, 2026

Note 9 – Leases

In January 2024, the Company entered into a long-term operating lease agreement for 14,000 square feet of biopharmaceutical manufacturing space in California under a non-cancelable operating lease that expires in December 2033. Under the terms of the lease, the Company is required to pay monthly base rents ranging from $11,900 to $16,218, and pay its proportionate share of property taxes, insurance and normal maintenance costs. The lease agreement includes two options to extend the lease for a term of five years each.

The components of lease cost for operating leases, which are recorded in general and administrative expenses in the accompanying condensed consolidated statement of operations, for the three months ended June 30, 2026 and 2025 were as follows:

	Three months Ended June 30, 2026		Six months Ended June 30, 2026
Operating lease cost	$	60,150	$	120,300
Short-term lease cost		49,039		64,333
Total lease cost	$	109,189	$	184,633

	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Operating lease cost	$	42,150	$	84,300
Short-term lease cost		14,011		22,411
Total lease cost	$	56,161	$	106,711

The following table summarizes the lease-related assets and liabilities recorded in the condensed consolidated balance sheets at June 30, 2026 and December 31, 2025:

	June 30, 2026		December 31, 2025
Operating Leases
Operating lease right-of-use assets	$	887,837	$	966,917
Right of use liability operating lease current portion	$	111,114	$	139,339
Right of use liability operating lease long term		890,638		933,625
Total operating lease liabilities	$	1,001,752	$	1,072,964

The Company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. The Company estimated its incremental borrowing rate to be 8%.

The following table provides the maturities of lease liabilities at June 30, 2026:

Schedule of Maturity Lease Liability

	Operating
	Leases
2026 (remaining 6 months)	$	106,486
2027		158,325
2028		163,866
2029		169,602
2030		175,538
2031 and thereafter		564,344
Total future undiscounted lease payments		1,338,161
Less: Interest		(336,409	)
Present value of lease liabilities	$	1,001,752