Leases

6 Months Ended

Jun. 30, 2026

7.Leases

The Company has one operating lease pertaining to 5,969 square feet of corporate office space in Sugar Land, Texas pursuant to a lease agreement that commenced April 1, 2022. As of June 30, 2026, the remaining term of lease was 1.08 years. The lease requires monthly lease payments that are subject to annual increases throughout the lease term.

The components of lease costs, which are included within general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive (loss) income were as follows (in thousands):


		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		2026			2025			2026			2025
Lease costs:
Operating lease cost		$	24		$	24		$	48		$	48
Variable lease cost			21			18			43			40
Total lease costs		$	45		$	42		$	91		$	88

Supplemental disclosure of cash flow information related to the lease were as follows (in thousands):

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

2026

 

2025

 

2026

 

2025

Operating cash flows from operating leases

101

100

The weighted-average discount rate and remaining lease term were as follows:


		For the Three Months Ended June 30,					For the Six Months Ended June 30,
		2026		2025			2026		2025
Weighted-average discount rate		9.50	%	9.50	%		9.50	%	9.50	%
Weighted-average remaining lease term		1.08		2.08			1.08		2.08

As of June 30, 2026, the maturities of the Company’s operating lease liabilities were as follows (in thousands):


Year Ended December 31,		Amount
2026 (remaining six months)		$	65
2027			88
Total lease payments			153
Less: imputed interest			(8)
Present value of lease liabilities			145
Less: operating lease liabilities, current portion		$	123
Operating lease liabilities, net of current portion		$	22