Note 11 - Leases

9 Months Ended

Sep. 30, 2026

Note 11 – Leases

Operating Leases

The Company had the following office and laboratory facility leases during the periods covered by this report:

•

In April 2016, UPL signed an addendum to its November 2014 lease agreement for the Company’s offices located in Israel, in order to increase the office space rented and to extend the rent period until 2019. In March 2019, UPL utilized the agreement extension option and extended the rent period for an additional three years until August 2022. In July 2022, UPL signed a lease extension agreement for the Company’s offices located in Israel, extending the term of the lease through September 2025, and, effective as of June 2025, the lease was renewed through September 2028. The Company's remaining contractual obligation under this lease is approximately $0.8 million as of September 30, 2026.

•

In November 2019, UPI entered into a new lease agreement for an office in Princeton, New Jersey, which the Company now uses as its headquarters. The lease commencement date was November 29, 2019 with an original lease term of 38 months, expiring January 31, 2023. In June 2022, the Company signed a lease extension for the Princeton office, extending the term of the lease through January 31, 2026. In August 2025, the Company signed an additional lease extension for the Princeton office, extending the term of the lease through April 30, 2031. The Company concluded that the lease renewal option in the agreement is not reasonably certain to be exercised. The modification did not result in a separate lease under ASC Topic 842. As a result, the Company remeasured its lease liability and corresponding right-of-use asset using its incremental borrowing rate at the modification date. The Company’s remaining contractual obligation under this lease is approximately $2.7 million as of September 30, 2026.

Finance Leases

•

In July 2024, UPI entered into a new master lease agreement for vehicles, primarily for use by employees in sales, field services, and roles that require regular travel. Under the terms of the master lease agreement, the Company will lease various vehicles from time to time with an initial lease term of 48 months commencing on the delivery date of the vehicle with an option to continue month-to-month for an unlimited period of time. Lease payments are fixed, with payments due monthly in advance, and include charges for depreciation, maintenance, and other related services. At the end of each lease term, the Company is required to make a terminal rental adjustment based on the difference between the vehicle’s contractual book value and its estimated wholesale value, which may result in additional payments or refunds. The Company may also be required to pay additional rent if the vehicle exceeds certain mileage limits or shows abnormal wear and tear during the lease term. The Company’s remaining contractual obligation relating to the leases entered into under this master agreement is approximately $4.9 million as of September 30, 2026.

In addition, the Company has other operating office equipment and vehicle leases. The Company’s operating leases may require minimum rent payments, contingent rent payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. The Company’s leases do not contain any residual value guarantees or material restrictive covenants. The Company’s leases expire at various dates from 2026 through 2031, with varying renewal and termination options.

In the second quarter of 2026, the Company began presenting right-of-use operating lease assets and lease liabilities separately from right-of-use finance lease assets and lease liabilities on the balance sheet and has adjusted the prior period presentation to conform. The Company previously reported all right-of-use assets within the financial statement line item “Right of use assets”, all long-term lease liabilities in the financial statement line item “Long-term lease liabilities”, and all short-term lease liabilities in the financial statement line item “Other current liabilities”.

The components of lease cost for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2026*		*2025*		*2026*		*2025*
Finance lease cost:
Amortization of right-of-use assets	$	458	$	382	$	1,325	$	901
Interest on lease liabilities		148		163		465		396
Operating lease cost		240		321		717		773
Variable lease cost		319		18		487		47
Total lease cost	$	1,165	$	884	$	2,994	$	2,117

As of September 30, 2026, no impairment losses have been recognized.

Supplemental information related to leases for the nine months ended September 30, 2026 and 2025 is as follows (in thousands, except for lease terms and discount rate amounts):

	*Nine Months Ended*
	*September 30,*
	*2026*			*2025*
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	1,324		$	2,030
Operating cash flows from operating leases	$	590		$	670
Right-of-use assets obtained in exchange for new finance lease liabilities	$	456		$	4,007
Weighted-average remaining lease term of finance leases (in years)		2.53			3.40
Weighted-average remaining lease term of operating leases (in years)		3.85			4.84
Weighted-average discount rate of finance leases		13.68	%		13.82	%
Weighted-average discount rate of operating leases		11.79	%		11.77	%

As of September 30, 2026, maturities of lease liabilities were as follows (in thousands):

	*Finance Leases*
Years ending December 31,
Remainder of 2026	$	486
2027		1,944
2028		1,902
2029		509
2030 and thereafter		50
Total future minimum lease payments		4,891
Less: Interest		(852	)
Present value of lease liabilities	$	4,039

	*Operating*
	*Leases*
Years ending December 31,
Remainder of 2026	$	248
2027		999
2028		913
2029		613
2030		613
2031 and thereafter		207
Total future minimum lease payments		3,593
Less: Interest		(702	)
Present value of lease liabilities	$	2,891