Note 3 – Fixed Assets, Net

Fixed Assets, Net

Fixed assets, net are summarized as follows:

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Depreciation expense related to office furniture, equipment and leasehold improvements for the three and six months ended June 30, 2026 was $3 thousand and $9 thousand, respectively.

Depreciation expense related to office furniture, equipment and leasehold improvements for the three and six months ended June 30, 2025 was $7 thousand and $12 thousand, respectively.

Leases

The Company leases office space in Tulsa, Oklahoma, Seattle, Washington, and Beijing, China. During May 2025, the Company renewed its Beijing, China lease for 24 months with monthly rent at approximately $3 thousand. As a result of this renewal, the Company increased the right-of-use (“ROU”) asset and lease liability by $68 thousand during the year ended December 31, 2025.

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During October 2024, the Company entered into a sub-lease agreement to rent office space in Seattle for approximately $2 thousand per month for twelve months. The Seattle lease is considered a short-term lease, as the lease term is 12 months or less from the commencement date. The Seattle lease was renewed in October 2025 with similar terms. The short-term lease expense for the three and six months ended June 30, 2026 was approximately $6 thousand and $12 thousand, respectively. The short-term lease expense for the three and six months ended June 30, 2025 was approximately $5 thousand and $11 thousand, respectively. The Tulsa and Beijing leases are classified as operating leases, each with remaining terms of less than two years; contractual language requires renewal negotiations to occur at or near termination. These leases are normal and customary for office space, in that, contractual guarantees exist requiring the lessee return the premises to its original functional state.

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The Tulsa lease contains fixed annual lease payments that increase annually by approximately 2%. The Seattle, Tulsa, and Beijing total monthly minimum rent is approximately $10 thousand. Operating lease costs for the three and six months ended June 30, 2026 were $25 thousand and $49 thousand, respectively. Operating lease costs for the three and six months ended June 30, 2025 were $25 thousand and $49 thousand, respectively.

Supplemental balance sheet information related to operating leases is as follows:

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

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Minimum future payments under the Company’s operating lease liabilities as of June 30, 2026 are as follows:

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