Note 6 — Commitments and Contingencies

Leases

Short-term Land Lease

On September 10, 2025, the Company entered into a lease agreement to lease a parcel of land in Colorado (“Colorado Lease”), which served as its installation site for the Company’s first Equipment unit. The lease commencement date is the date selected by the Company within 30 days following the applicable government hearing granting permission for use. The Company obtained its permit on October 29, 2025, and selected November 1, 2025 as the lease commencement date. The lease has an initial term of one year and includes four options to extend the term, each for an additional one-year period. The monthly payment under the Colorado Lease will automatically increase for each extension term at the rate of 5%. During the three and six months ended June 30, 2026 and 2025, the Company recognized $7,500 and $15,000 of rent expense in connection with such lease within the general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations, respectively. The Colorado Lease was not in effect during the three and six months ended June 30, 2025, and accordingly, no rent expense related to the lease was recognized during those periods.

On September 21, 2025, the Company entered into another land lease agreement for a parcel of land in Utah (“Utah Lease”) dependent on obtaining a government permit from the State of Utah which was granted on October 6, 2025. The lease commencement date is the date selected by the Company within 30 days following the applicable government hearing granting permission for use. The lease has an initial term of one year and includes four options to extend the term, each for an additional one-year period. The Utah Lease has a monthly base rate of $200, which will automatically increase for each extension term at the rate of 5%.

Warehouse Lease

Effective April 1, 2026, the Company entered into an operating lease for warehouse space in Brighton, Colorado. The lease has an initial term of three years and expires on March 31, 2029. The lease includes one option to extend the lease term for an additional three years at then-current market rates. The Company determined that the renewal option is not reasonably certain to be exercised and, accordingly, it is not included in the lease term. The Company paid a refundable security deposit of $5,433, which is included in other assets in the accompanying unaudited condensed balance sheet.

Upon commencement of the lease, the Company recognized an operating lease right-of-use asset and corresponding operating lease liability of $118,333. As of June 30, 2026, the operating lease right-of-use asset had a carrying value of $108,979. The operating lease liability as of June 30, 2026 consisted of the following:

Future minimum lease payments under the operating lease as of June 30, 2026 were as follows:

Other Revenue

In January 2026, the Company entered into a service agreement with the Utah Division of Water Resources to support the installation of a generator to facilitate radiometer data ingestion associated with the Company’s rainfall monitoring infrastructure. The agreement provided for payment of $10,500 to the Company in connection with the installation.

The Company completed the installation, received payment for the services in February 2026, and recognized revenue of $10,500 upon completion of the installation, which represents the satisfaction of the Company’s performance obligation in accordance with ASC 606. This activity is not part of the Company’s primary operations related to its AEI technology and is considered incidental in nature. The Company has not generated revenue from its core business activities to date.