v3.26.1
Leases
6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Leases [Abstract]    
Leases
Note 4 – Leases
The Company leases office space in Goleta, California (two locations) and Tokyo, Japan under operating lease agreements. Lease terms range from 24 to 72 months, with certain leases containing options to extend.
In addition to fixed lease payments, the Company incurs variable charges for its proportionate share of common area maintenance and building operating expenses under its domestic leases, which are recognized as incurred. One lease is denominated in Japanese yen; the related lease liability is remeasured at the current exchange rate at each reporting date with resulting gains or losses recognized in the unaudited condensed consolidated statements of operations
.
The components of lease costs were as follows:
 
    
Three Months Ended June 30,
    
Six Months Ended June 30,
 
    
    2026    
    
    2025    
    
    2026    
    
    2025    
 
Operating lease expense
    $ 58,316        $ 55,122        $ 116,632        $ 110,244   
Variable lease cost
     18,380         16,025         33,064         33,257   
  
 
 
    
 
 
    
 
 
    
 
 
 
Total lease cost
    $ 76,696        $ 71,147        $ 149,696        $ 143,501   
  
 
 
    
 
 
    
 
 
    
 
 
 
The table below summarizes supplemental balance sheet information:
 
    
 June 30, 2026 
    
 December 31, 2025 
 
Operating
right-of-use
assets
    $ 623,122        $ 704,854   
  
 
 
    
 
 
 
Current portion of operating lease liabilities
    $ 177,601        $ 164,940   
Operating lease liabilities, net of current portion
     477,716         569,881   
  
 
 
    
 
 
 
Total operating lease liabilities
    $ 655,317        $ 734,821   
  
 
 
    
 
 
 
 
As of June 30, 2026 the future minimum lease payments under
non-cancelable
operating leases are as follows:

 
Year Ending December 31,
  
2026, remaining
    $ 116,258  
2027
     238,313  
2028
     223,229  
2029
     194,674  
  
 
 
 
Total future undiscounted lease payments
     772,474  
Less: imputed interest
     (117,157
  
 
 
 
Present value of operating lease liabilities
    $ 655,317  
Less: Current portion of operating lease liabilities
     (177,601 )
  
 
 
 
Operating lease liabilities, net of current portion
    $     477,716  
  
 
 
 
The table below summarizes other information related to the Company’s leases:
 
    
  Three Months Ended June 30,  
    
  Six Months Ended June 30,  
 
    
2026
    
2025
    
2026
    
2025
 
Cash paid for amounts included in the measurement of lease liabilities
    $
57,528
      $ 55,034       $ 114,405       $ 110,068  
           
As of June 30,
 
                  
2026
    
2025
 
Weighted-average remaining lease term (in years)
           3.4        4.2  
Weighted-average discount rate
           9.94%        9.94%  
Note 4 – Leases
The Company leases office space in Goleta, California (two locations) and Tokyo, Japan under operating lease agreements. Lease terms range from 24 to 72 months, with certain leases containing options to extend.
In addition to fixed lease payments, the Company incurs variable charges for its proportionate share of common area maintenance and building operating expenses under its domestic leases, which are recognized as incurred. One lease is denominated in Japanese yen; the related lease liability is remeasured at the current exchange rate at each reporting date with resulting gains or losses recognized in the consolidated statements of operations.
Aero Camino Office (82 Aero Camino)
- The lease commenced January 15, 2024 with a
72-month
term (including a
36-month
extension that was considered reasonably certain at inception) expiring December 31, 2029.
2025 Lease Modifications
During 2025, the Company exercised renewal options on two of its operating leases:
Hollister Office (6950 Hollister Avenue) -
The original lease commenced August 1, 2023 with a
36-month
initial term expiring July 31, 2026. The renewal option for an additional
36-month
period was not considered reasonably certain of exercise as of December 31, 2024. In 2025, the Company elected to exercise the renewal, extending the lease through July 31, 2029. The Company accounted for this as an operating lease modification effective November 1, 2025.
Japan Office (H1O Shibakoen, Tokyo) -
The original lease commenced March 1, 2024 with a
24-month
initial term expiring February 28, 2026. The renewal option was not considered reasonably certain of exercise as of December 31, 2024. In 2025, the Company elected to renew for an additional
24-month
period through February 29, 2028. The Company accounted for this as an operating lease modification effective November 1, 2025.
At the modification date, the Company remeasured the lease liabilities for the Hollister and Japan leases using the remaining lease payments discounted at the incremental borrowing rate of 9.94%. The modifications resulted in a combined increase to the
right-of-use
assets and operating lease liabilities of $216,358.
The components of lease costs were as follows:
 
    
Years Ended December 31,
 
    
2025
    
2024
 
Operating lease expense
   $   221,552      $   216,869  
Variable lease cost
     66,092        57,984  
  
 
 
    
 
 
 
Total lease cost
   $ 287,644      $ 274,853  
  
 
 
    
 
 
 
The table below summarizes supplemental balance sheet information:
 
    
Years Ended December 31,
 
    
2025
    
2024
 
Operating
right-of-use
assets
   $ 704,854      $ 648,136  
  
 
 
    
 
 
 
Current portion of operating lease liabilities
   $ 164,940      $ 160,016  
Operating lease liabilities, net of current portion
     569,881        516,838  
  
 
 
    
 
 
 
Total operating lease liabilities
   $   734,821      $   676,854  
  
 
 
    
 
 
 
As of December 31, 2025 the future minimum lease payments under
non-cancelable
operating leases are as follows:
 
Year Ending December 31,
      
2026
   $ 230,663  
2027
     238,313  
2028
     223,229  
2029
     194,674  
  
 
 
 
Total future undiscounted lease payments
     886,879  
Less: imputed interest
     (152,058
  
 
 
 
Present value of operating lease liabilities
   $    734,821  
Less: Current portion of operating lease liabilities
     (164,940
  
 
 
 
Operating lease liabilities, net of current portion
   $ 569,881  
  
 
 
 
The table below summarizes other information related to the Company’s
leases
:
 
    
Years Ended December 31,
 
    
2025
    
2024
 
Cash paid for amounts included in the measurement of lease liabilities
   $   220,302      $   193,006  
Weighted-average remaining lease term (in years)
     3.8        4.4  
Weighted-average discount rate
     9.94%        9.94%