NOTE 9 – LEASES

The Company leases space under operating leases for administrative, manufacturing and laboratory facilities in Cleveland, Ohio. The Company also leases certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and the Company has elected the practical expedient to exclude these short-term leases from the Company’s right-of-use assets and lease liabilities.

The following table provides a summary of the Company’s operating lease liabilities (in thousands):

 SUMMARY OF OPERATING LEASE LIABILITIES

Lease costs and rent are reflected in selling, general and administrative expenses and research and development expenses in the condensed consolidated statements of operations and comprehensive (loss) income, as determined by the underlying activities.

The following table provides a summary of the components of lease costs and rent (in thousands):

 SCHEDULE OF COMPONENTS OF LEASE COST

Cash paid for amounts included in the measurement of operating lease liabilities was $0.3 million for the three months ended June 30, 2026 and 2025, and $0.6 million and $0.7 million for the six months ended June 30, 2026 and 2025, respectively.

Future minimum lease payments and obligations, which do not include short-term leases, related to the Company’s operating lease liabilities as of June 30, 2026 were as follows (in thousands):

 SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES

The weighted-average remaining term of the Company’s operating leases was 54 months, and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 9.1% as of June 30, 2026.