From time to time, the Company may be subject to various legal proceedings or claims that arise in the ordinary course of business. The Company accrues a liability when the Company's management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. There were no material litigation-related accruals recorded as of June 30, 2026.

The Company has operating leases for laboratory and office facilities in Bothell, Washington that expire in August 2027. The initial terms of the leases range from 6.3 to 7 years and the Company has options to extend the leases for an additional five years that it is not reasonably certain to exercise. As of June 30, 2026, the Company was not party to any finance leases.

The following table reconciles the Company’s undiscounted operating lease cash flows to its operating lease liability (in thousands):


	June 30, 2026
2026	$	256
2027		346
Total undiscounted lease payments		602
Present value adjustment for minimum lease commitments		(25	)
Net lease liability	$	577

The weighted average remaining lease term and the weighted average discount rate used to determine the operating lease liability were as follows:


	June 30, 2026
Weighted average remaining lease term (years)		1.2
Weighted average discount rate		8.1	%

Operating lease expense and variable lease expense consisted of the following (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease expense	$	88	$	88	$	176	$	176
Variable lease expense		20		41		47		86