5. Leases

On November 21, 2025, the Company assumed, as part of the Liora acquisition, a two-year lease agreement with United Kingdom Research and Innovation for the rental of the premises at UKRI Daresbury that houses the acquired LiGHT system equipment. The lease was classified as an operating lease and has a quarterly base rent of GBP 147,596 or approximately $198,500. The lease commencement date was November 17, 2025 and has no renewal option.

Supplemental cash flow information related to operating leases is as follows:

 Schedule of Supplemental Cash Flow Information Related to Operating Leases

The Company’s operating lease right of use asset was $972,682 as of December 31, 2025. During the six months ended June 30, 2026, the Company recorded noncash operating lease amortization expense of $230,255, resulting in an operating lease right of use asset of $742,427 as of June 30, 2026.

The Company’s operating lease liability balance was $1,034,377 as of December 31, 2025. During the six months ended June 30, 2026, the Company was not required to make any lease payments against its operating lease obligations. During the six months ended June 30, 2026, the accretion of the lease liability was $67,417, resulting in a lease liability of $1,101,794 as of June 30, 2026. The current portion of operating lease obligation was $940,775, and a long-term portion of the operating lease obligation was $161,019.

During the six months ended June 30, 2026 and 2025, lease costs totaled approximately $297,671 and $0, respectively.

Maturities of the Company’s operating lease liabilities are as follows as of June 30, 2026:

 Schedule of Maturities of Operating Lease Liabilities