LEASES

6 Months Ended

Jun. 30, 2026

8. LEASES

The Company’s former subsidiary, SmartKem Limited had operating leases consisting of office space, lab space and equipment with remaining lease terms of 1 to 3 years. As of June 12, 2026, all lease agreements are under the management and control of the administrator.

The table below presents certain information related to the lease costs for the Company’s operating leases for the periods ended:


		Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)		2026			2025			2026			2025
Operating lease cost		$	76		$	68		$	148		$	141
Short-term lease cost			140			9			141			12
Total lease cost		$	216		$	77		$	289		$	153

The total lease cost is included in the unaudited condensed consolidated statements of operations as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2026			2025			2026			2025
Research and development	$	215		$	75		$	287		$	148
General and administrative		1			2			2			5
Total lease cost	$	216		$	77		$	289		$	153

As a result of the deconsolidation of SmartKem Limited, the Company does not have any Right of use lease assets or lease liabilities as of June 30, 2026. Right of use lease assets and lease liabilities for the Company’s operating leases were recorded in the unaudited condensed consolidated balance sheet as follows:


	June 30,			December 31,
(in thousands)	2026			2025
Assets
Right of use assets - Operating Leases	$	—		$	607
Total lease assets	$	—		$	607

Liabilities
Current liabilities:
Lease liability, current - Operating Leases	$	—		$	271
Noncurrent liabilities:
Lease liability, non-current - Operating Leases		—			312
Total lease liabilities	$	—		$	583