Operating leases — The Company leases its office space under operating leases with unrelated entities.

Prior to November 2024, the Company leased 21,293 square feet of office space for its headquarters in Torrance, California, at a base rental of $90,069 per month pursuant to a lease, as amended, which was scheduled to expire on September 30, 2026. In November 2024, the lease was amended to, among other things, reduce the leased space to 4,639 square feet at a base rental of $18,556 per month and to provide for the upfront payment of approximately $58,483 to fund the cost of demising work on the former leased space. The amended lease became effective on April 2, 2025 and will expire on April 1, 2030. In addition, the Company leases 1,163 square feet of office space in Dubai, United Arab Emirates, which the lease expired on June 19, 2026. The Company renewed the lease for additional three years.

The lease expense during the three months ended June 30, 2026 and 2025 was approximately $103,000 and $97,000 respectively, and during the six months ended June 30, 2026 and June 30, 2025 was approximately $193,000 and $346,000, respectively.

As of June 30, 2026, future minimum lease payments under the lease agreements were as follows (in thousands):


	Amount
2026	$	273
2027		551
2028		560
2029 and after		669
Total lease payments		2,053
Less: Interest		364
Current portion		390
Operating lease liabilities, less current portion	$	1,299

As of June 30, 2026, the Company had an operating lease right-of-use asset of $0.8 million and lease liability of $1.7 million reflected on the condensed consolidated balance sheet. The weighted average remaining term of the Company’s leases as of June 30, 2026 was 3.6 years and the weighted-average discount rate was 10.6%.