v3.26.1
Balance Sheet Details
6 Months Ended
Jun. 30, 2026
Balance Sheet Details [Abstract]  
Balance Sheet Details

Note 4 — Balance Sheet Details

 

Inventories

 

Inventories, which primarily relate to Proclarix product as of June 30, 2026 and December 31, 2025, consisted of the following:

 

    June 30,
2026
    December 31,
2025
 
Raw materials   $ 94,525     $ 103,431  
Finished goods     115,923       46,530  
Total   $ 210,448     $ 149,961  

 

Prepaid Expenses and Other Current Assets

 

Prepaid expenses and other current assets consisted of the following as of June 30, 2026, and December 31, 2025:

 

    June 30,
2026
    December 31,
2025
 
Prepaid insurance   $ 217,244     $ 136,739  
VAT taxes receivable     40,217       31,955  
Prepaid other     99,129       170,552  
Other receivable     6,172       10,047  
Total   $ 362,762     $ 349,293  

 

Goodwill

 

Goodwill consisted of the following as of June 30, 2026 and December 31, 2025:

 

Balance as of December 31, 2025   $ 18,549,005  
Impairment loss     (8,134,000 )
Foreign currency translation     (211,532 )
Balance as of March 31, 2026   $ 10,203,473  
Impairment loss     (486,000 )
Foreign currency translation     (99,331 )
Balance as of June 30, 2026   $ 9,618,142  

 

Impairments for three and six months ended June 30, 2026 and 2025

 

During the three and six months ended June 30, 2026 and 2025, the Company’s stock price and market capitalization declined, and the Company determined that this was an indicator of a potential impairment of its goodwill. Accordingly, as of June 30, 2026 and 2025, the Company performed quantitative analysis to identify and measure the amount of impairment losses to be recognized. The Company recognized goodwill impairment losses of approximately $0.5 million and $0.6 million for the three months ended June 30, 2026 and 2025, respectively. The Company recognized goodwill impairment losses of approximately $8.6 million and $11.5 million for the six months ended June 30, 2026 and 2025, respectively.

 

The fair value of the reporting unit is estimated using a market approach. Beginning in the second quarter of 2024, the Company elected to use a market capitalization reconciliation methodology as its sole valuation technique in estimating the fair value of the reporting unit. Under this approach, the fair value of the reporting unit is determined based on the Company's market capitalization, calculated using the quoted market price of its common stock and outstanding shares, with consideration given to whether adjustments are necessary to reconcile market capitalization to the fair value of the reporting unit.

 

Accrued Expenses

 

Accrued expenses consisted of the following as of June 30, 2026 and December 31, 2025:

 

    June 30,
2026
    December 31,
2025
 
Accrued compensation   $ 14,884     $ 42,228  
Accrued professional fees     138,093       201,208  
Other accrued expenses     16,630       18,445  
Accrued franchise taxes     80,000       80,000  
Total   $ 249,607     $ 341,881