Property and equipment, net consisted of the following (in thousands):

	June 30,		December 31,
	2026		2025
Property and equipment at cost:
Equipment	$	2,605	$	4,161
Furniture and fixtures		380		380
Computer hardware		141		-
Computer software		30		30
Construction in progress		1,147		1,362
Total property and equipment		4,303		5,933
Accumulated depreciation		(1,453)		(3,054)
Property and equipment, net	$	2,850	$	2,879

Contract liabilities of $335,000 as of December 31, 2025 were included in accrued expenses on the condensed consolidated balance sheet. This balance represented a reserve established in connection with a legacy Program Participation Agreement (the "PPA") originally entered into by Second Sight Medical Products, Inc., a predecessor entity, with a customer relating to the Company's discontinued Argus II retinal prosthesis. Under the PPA, the Company could have been required to refund the purchase price of the product to the extent the customer did not obtain third-party insurance reimbursement.

During the quarter ended June 30, 2026, the Company determined, based on the assessment of legal counsel, that the applicable contractual claim period and statute of limitations had expired and that the Company was no longer legally obligated under the PPA. Accordingly, the Company concluded that the obligation was no longer enforceable and derecognized the liability. Because the arrangement relates to a discontinued legacy product line and does not reflect revenue from the Company's current operations, the Company recorded the $335,000 derecognition as a gain within other income, net in the condensed consolidated statement of operations, rather than as product revenue or as a reduction of operating expenses. There was no balance of contract liabilities as of June 30, 2026.