v3.26.1
Note 11 - Leases
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

Note 11  Leases

 

The Company recognizes a right-of-use (“ROU”) asset and a lease liability on the balance sheets for substantially all leases, including operating leases, and separates lease components from non-lease components related to its office space lease.

 

In  May 2025, the Company entered into an amendment to its office lease agreement to expand its office space, from 5,507 square feet, to 8,079 square feet and to renew its lease term. The amendment to the lease agreement was effective  September 1, 2025 and the renewal period for the office lease is for a sixty-five month period through  January 2031 and which includes tenant improvement allowances. The Company removed its existing ROU asset and liability and recorded $333 in ROU assets, $189 in tenant improvement allowances and $522 in operating lease liabilities in association with the lease extension. 

 

In  May 2026, the Company entered into an additional office lease agreement for 4,634 square feet. The lease agreement was effective May 15, 2026 for a fifty-one month period through July 2030. The Company capitalized $849 in ROU assets and recorded $849 in operating lease liabilities in association with the lease agreement. 

 

The Company’s operating lease cost was $85 and $42 for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025, cash paid for operating leases was $97 and $45, respectively. The ROU asset non-cash lease expense was $45 and $30 for the six months ended June 30, 2026 and 2025, respectively, and is reflected within non-cash lease expense on the Company’s Condensed Statements of Cash Flows. As of June 30, 2026 and December 31, 2025, the average remaining lease term was 4.4 and 5.2 years, respectively, and the weighted average discount rate was 11.0% and 11.8%, respectively, for each period.

 

The table below presents the lease-related assets and liabilities recorded on the balance sheets as of June 30, 2026 and  December 31, 2025:

 

   

June 30,

  

December 31,

 

Assets

Classification

 

2026

  

2025

 

Operating lease right-of-use assets

Operating lease right-of-use assets, net

 $1,114  $310 

Total leased assets

 $1,114  $310 

Liabilities

         

Operating lease liabilities, current

Accrued liabilities

 $239  $65 

Operating lease liabilities, noncurrent

Operating lease liabilities, net of current portion

  1,083   460 

Total operating lease liabilities

 $1,322  $525 

 

The Company’s future lease commitments as of June 30, 2026, are as indicated below:

 

  

Total

  

2026 (Remainder)

  

2027

  

2028

  

2029

  

2030

  

2031 and thereafter

 

Undiscounted lease payments

 $1,668  $184  $375  $387  $398  $299  $25 

Less: Imputed interest

  (346)                        

Total lease liabilities

 $1,322