6. Leases

The Company has an operating lease for its office space in Pennsylvania. During the three months ended June 30, 2026, the Company entered into an amendment to the lease agreement that shortened the contractual lease term from December 31, 2030 to March 31, 2027. The amendment was accounted for as a lease modification that decreased the scope of the original lease.

As of the effective date of the modification, the Company reduced the carrying amounts of the operating lease liability and the related right-of-use asset by approximately $0.37 million and $0.33 million, respectively, and recognized a gain on lease modification of approximately $0.04 million, representing the difference between those reductions. The remaining lease liability was remeasured based on the revised contractual lease payments using a discount rate of 6.00% determined as of the modification date, with a corresponding adjustment to the right-of-use asset. The gain on lease modification is included in other income (expense), net in the accompanying Condensed Consolidated Statement of Operations.

As of June 30, 2026 and December 31, 2025, the following amounts were recorded in the Consolidated Balance Sheets relating to the Company’s operating lease.

 Schedule of Operating Lease

The following table summarizes the contractual maturities of operating lease liabilities as of June 30, 2026:

 Schedule of Maturities of Operating Lease Liabilities

The following table illustrates information for the Company’s operating lease during the six months ended June 30, 2026 and the year ended December 31, 2025:

 Schedule of Operating Lease Cost

The reason we are seeking to terminate the lease early is that, while the base rent appears reasonable on paper, the lease structure requires the company to pay significant additional maintenance and property-related expenses on top of the monthly lease payments. As part of our broader cost reduction initiatives and given that approximately half of our workforce already operates remotely, our current headcount no longer supports this amount of space. It is not economically prudent to continue carrying these occupancy costs, and we are seeking these savings effective throughout 2027.