Prepaid expenses and other current assets consist of the following (in thousands):


	June 30, 2026		December 31, 2025
Prepaid research and development expenses	$	1,269	$	578
Short-term Italian research and development tax credit, net		229		—
Short-term VAT receivable, net		4,773		3,622
Prepaid insurance		272		635
Prepaid expenses		494		255
Other current assets		393		54
Total prepaid expenses and other current assets	$	7,430	$	5,144

The Company was eligible to obtain an R&D tax credit as companies in Italy that invest in eligible research and development activities, regardless of the legal form and economic sector in which they operate, can benefit from an R&D tax credit. Such tax credits can only be used to offset payments of certain taxes and contributions (e.g., social contributions, VAT payables, registration fees, income and withholding taxes and other tax-related items that companies usually pay monthly). During the three and six months ended June 30, 2026, the Company recorded no increases to R&D tax credit and $3.0 million increase to R&D tax credit balance due to the release of Italy-related unrecognized tax benefits. During the three and six months ended June 30, 2026, the Company utilized $1.5 million and $2.1 million of R&D tax credit towards related tax payable and payroll-related tax expenses. The Company recorded an adjustment to reduce the reserve for estimated credits that were not probable of being used of $0.4 million for a total of $0.7 million reserved based on forecasted utilization in Italy as of June 30, 2026.

During the three and six months ended June 30, 2026, the Company recorded a $0.5 million reserve for estimated VAT receivable that are not probable of being recovered.

The Company recognized a total reduction to R&D expense of $0.1 million and $1.2 million for the three and six months ended June 30, 2026, and reductions to R&D expense of $0.6 million and $0.9 million for the three and six months ended June 30, 2025.

The balance in the reserve for Italian research and development tax credit and reserve for VAT receivable for the six months ended June 30, 2026 is as follows (in thousands):


	Reserve for Italian research and development tax credit			Reserve for VAT receivable
Beginning balance as of December 31, 2025	$	—		$	—
Change in reserve		(649	)		(515	)
Ending balance as of June 30, 2026	$	(649	)	$	(515	)

Other assets consisted of the following (in thousands):


	June 30, 2026		December 31, 2025
Long-term VAT receivable	$	—	$	1,682
Equity investments in Lighthouse Pharmaceuticals, Inc.		78		78
Total other assets	$	78	$	1,760

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


	June 30, 2026			December 31, 2025
Computer equipment	$	61		$	66
Computer software		38			32
Lab equipment		1,031			1,076
Leasehold improvement		37			38
Office furniture		221			227
Less: accumulated amortization and depreciation		(882	)		(844	)
Property and equipment, net	$	506		$	595

Accrued expenses and other current liabilities consist of the following (in thousands):


	June 30, 2026		December 31, 2025
Personnel expenses	$	1,762	$	3,138
Research and development expenses		722		6,966
Professional fees		1,016		181
Current portion of operating lease liabilities		—		115
Other		364		208
Total accrued expenses and other current liabilities	$	3,864	$	10,608

During the six months ended June 30, 2026, the Company entered into settlement agreements with vendors pursuant to which they relinquished amounts owed by the Company. This resulted in a $3.7 million gain on settlement of accounts payable for the six months ended June 30, 2026, which is reflected in the condensed consolidated statements of operations and comprehensive loss within research and development.

For the six months ended June 30, 2026 and 2025, the severance accrual activity was as follows (in thousands):


	For the Six Months Ended June 30,
	2026			2025
Beginning accrued severance	$	42		$	—
Incurred during the period		2,251			413
Severance paid during the period		(2,293	)		(168	)
Ending accrued severance	$	—		$	245

During the six months ended June 30, 2026 and 2025, the Company incurred severance costs related to personnel separation, reflecting payments made and accrued to departing employees.

Other long-term liabilities consist of the following (in thousands):


	June 30, 2026		December 31, 2025
Federal and state taxes payable	$	540	$	773
Foreign taxes payable		103		691
Other long-term liabilities		73		106
Other long-term liabilities	$	716	$	1,570