The Company leases combined office and manufacturing facilities in Mountain View, California under a non‑cancelable operating lease originally entered into in 2011 and amended most recently in 2022 to extend the term through June 2030. The lease includes an option to extend for an additional five‑year period through June 30, 2035. The renewal terms have not been included in the lease term used to calculate the right-of-use assets and lease liability as it is not reasonably certain that the Company will exercise the option. In connection with the lease, the Company maintains a letter of credit of $0.1 million in lieu of a security deposit.

The terms of the facility lease provide for rental payments on a graduated scale; however, rent expense is recognized on a straight-line basis over the lease term.


(in thousands)	June 30, 2026
2026 (remaining six months)	$	1,515
2027	3,122
2028	3,215
2029	3,312
2030	1,704

Total undiscounted lease payments	12,868
Less: imputed interest	1,951
Total operating lease liability	10,917
Less: current portion	2,256
Operating lease liability, net of current portion	$	8,661

Operating lease cost was $0.7 million for each of the three months ended June 30, 2026 and 2025. Operating lease cost was $1.4 million for each of the six months ended June 30, 2026 and 2025. As of June 30, 2026, the remaining term for the operating lease in Mountain View, California was 4 years, and the discount rate used to measure the lease liability for such operating lease upon recognition was 8.5%.

For each of the six months ended June 30, 2026 and 2025, cash paid for amounts included in operating lease liabilities of $1.5 million was included in cash flows from operating activities on the condensed statements of cash flows.

In August 2022, the Company entered into an exclusive distribution agreement, or the Distribution Agreement, with DIXI Medical USA Corp., or DIXI Medical, for its stereo electroencephalography product line, with an initial term through September 30, 2025. The Distribution Agreement required annual purchase commitments, which increased by 10% each year during the term. The Company satisfied these purchase commitments.

The Distribution Agreement provided for automatic one-year renewals unless either party gave at least 180 days notice of non-renewal. In March 2025, the Company provided notice of its intent not to renew and the Distribution Agreement expired on September 30, 2025.

Following expiration, the Company was permitted to sell remaining inventory during a wind-down period, after which DIXI Medical was required to buy back, at cost, any DIXI Medical product inventory with at least six months remaining shelf life held by the Company.

In December 2025, the Company and DIXI Medical amended the Distribution Agreement to end the wind-down period and cease commercial partnership activities on December 31, 2025. The Company has completed the return of all remaining inventory and had no DIXI Medical product inventory as of June 30, 2026.

Effective June 30, 2026, the Company concluded that the abandonment of its DIXI Medical product operations represented a strategic shift that would have a major effect on the Company’s operations and financial results. Accordingly, the DIXI Medical product operations met the criteria for presentation as a discontinued operation. See Note 11 for additional information.

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and indemnification provisions. The Company’s exposure under these arrangements is unknown, as it involves potential future claims.

The Company also indemnifies its directors and officers, subject to certain limits, as permitted under Delaware law and its governing documents. These obligations extend through the duration of any related proceedings, and the maximum potential payments are not estimable. No indemnification claims are currently outstanding, and the Company believes the estimated fair value of these indemnification arrangements is minimal. As such, the Company has not recognized any such liabilities as of June 30, 2026 and December 31, 2025.

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company records a liability for contingent obligations when a loss is probable and reasonably estimable. No accrual was required as of June 30, 2026 and December 31, 2025.

The Company is not involved in any material legal proceedings. From time to time, the Company may be involved in litigation arising in the ordinary course of business. The Company regularly evaluates current information and records accruals as appropriate. Legal costs are expensed as incurred. No material accruals were recorded as of June 30, 2026 and December 31, 2025.