Note 4 – Lease

In April 2024, the Company entered into a first amendment and relocation agreement (the “Amended Lease”) with its landlord. The Amended Lease is for 5,775 square feet of office and laboratory space and, upon occupancy, replaced the 4,070 square feet of office and laboratory space previously leased by the Company. The term of the Amended Lease expires sixty-two (62) months from July 1, 2024, the commencement date. The annual base rent for the first year of the Amended Lease was $118,388 and the annual base rent increases approximately 2.75% each year during the lease term. The Company is required to pay its proportionate share of operating costs for the building under this triple net lease.

The Company recognized a right of use asset of $524,025 and a corresponding lease liability for the Amended Lease on the commencement date. For purposes of calculating the right of use asset and lease liability, the Company estimated its incremental borrowing rate at 8.5% per annum.

Future minimum payments under the Amended Lease are as follows:

At June 30, 2026, the remaining lease term was 38 months.

For the three months ended June 30, 2026 and 2025, operating cash flows for lease payments totaled $30,406 and $29,597, respectively, and for the six months ended June 30, 2026 and 2025, operating cash outflows for lease payments totaled $60,811 and $59,194, respectively. For both the three months ended June 30, 2026 and 2025, operating lease cost, recognized on a straight-line basis, totaled $30,856 and for both the six months ended June 30, 2026 and 2025, operating lease cost, recognized on a straight-line bases, totaled $61,712.