The Company has one operating lease for its office space which was amended effective May 1, 2026 for a term of 24 months with no residual value guarantees or material restrictive covenants. The amended lease may be terminated by the Company effective April 30, 2027 or October 31, 2027 and continues the security deposit of $6,000. In addition to base rental payments included in the contractual obligations table above, the Company is responsible for our pro-rata share of the operating expenses for the building. Our lease cost for the three months ended June 30, 2026 and 2025 was approximately $17,000 and $13,000, respectively, and is included in general and administrative expenses. Our lease cost for the six months ended June 30, 2026 and 2025 was approximately $33,000 and $28,000, respectively, and is included in general and administrative expenses.

As of June 30, 2026, the right to use lease asset consisted of $118,000 and is included in other assets. Also, at June 30, 2026, current lease liability of $59,000 is included in accrued expenses and the long term lease liability of $59,000 is included in other noncurrent liabilities.