On March 7, 2023, the Company entered into a noncancellable operating lease for office space and warehouse space. The commencement date of this lease was July 1, 2023, with an end date of July 31, 2028. Leases for all prior years were month to month. The original lease contained a renewal option to extend the term for a period of five years. Because the Company was reasonably certain it would exercise its renewal option, the optional period was included in determining the lease term, and associated payments under these renewal options were included in lease payments. The Company’s lease does not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contract include fixed payments plus variable payments. The Company’s office space lease requires it to make variable payments for the Company’s proportionate share of the building’s property taxes, and common area operating expenses. These variable lease payments are not included in lease payments used to determine lease liability and are recognized as variable costs when incurred.

On March 20, 2025 the Company entered into a modification of its existing operating lease. The modification extended the lease term to April 30, 2030, expanded the office space and revised the future lease payments. Although the modification grants the Company an additional right of use at a stand-alone price, the modification also changes the scope of the original lease by extending it two additional years while also removing the renewal option. As such, the modification has been accounted for as a single contract.

On August 8, 2025, the Company entered into an additional non-cancellable operating lease for office space. The commencement date of the lease was September 1, 2025, with an end date of August 31, 2028. Payments due under the lease contract include fixed payments plus variable payments. The Company’s office space lease requires it to make variable payments for the Company’s proportionate share of the building’s property taxes, and common area operating expenses. These variable lease payments are not included in lease payments used to determine lease liability and are recognized as variable costs when incurred in accordance with ASC 842.

Supplemental lease cost information is as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Operating lease cost	$	102	$	30	$	204	$	55
Short-term lease cost		7		8		13		18
Variable lease cost		22		11		38		22
Total lease cost	$	131	$	49	$	255	$	95


	June 30, 2026		December 31, 2025
Operating Leases:
Right-of-use asset	$	932	$	1,068

Operating lease liabilities, current	$	358	$	358
Operating lease liabilities, non-current		790		948
Total operating lease liabilities	$	1,148	$	1,306

The following table presents undiscounted future minimum lease payments as of June 30, 2026, which reconcile to the total lease liability as follows (in thousands):


Years Ending December 31
2026, remaining months	$	229
2027		467
2028		387
2029		206
2030		70
Total undiscounted future minimum lease payments		1,359
Less: Amounts representing interest		(211	)
Total lease liabilities	$	1,148

The weighted average lease terms and discount rates are as follows:


Operating Lease Term and Discount Rate	June 30, 2026	December 31, 2025
Weighted-average remaining lease term	3.05 years	3.54 years
Weighted-average discount rate	10.82%	10.82%

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Cash paid for amounts included in the measurement of lease liabilities:	2026		2025		2026		2025
Operating cash flow from operating leases	$	113	$	26	$	225	$	51