Note 7 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

7. Commitments and Contingencies 

In addition to the commitments and contingencies described elsewhere in these notes, see below for a discussion of the Company's commitments and contingencies as of September 30, 2025.

Lease Obligations Payable

The following summarizes quantitative information about the Company's operating leases for the three and nine months ended September 30, 2025 and 2024, respectively (table in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Lease cost:
Operating lease cost	$	38	$	37	$	112	$	112
Variable lease cost		7		7		22		17
Total	$	45	$	44	$	134	$	129

In September 2023, the Company executed an amendment to extend the corporate office lease until August 31, 2029, with an option to renew. The Company is required to remit base monthly rent of approximately $4,700 which will increase at an average approximate rate of 2% each year. The Company is also required to pay additional rent in the form of its pro-rata share of certain specified operating expenses of the building. 

In June 2022, the Company extended the lab lease until September 30, 2027, with no further right or option to renew. The Company recorded approximately $12,000 in sublease income from a related party for the three months ended September 30, 2025 and 2024 and $37,000 for each of the nine months ended September 30, 2025 and 2024. Sublease income is recorded as other income, net on the Company's condensed consolidated statement of operations and comprehensive loss. Operating cash flows from operating leases was $40,000 and $39,000 for the three months ended  September 30, 2025 and 2024, respectively, and $119,000 and $107,000 for the nine months ended September 30, 2025 and 2024, respectively.

In March 2025, the Company terminated the WP1122 license with MD Anderson. The upcoming annual maintenance fee on this license was previously expensed and accrued, as the annual fee is due annually in April. 

Licenses 

MD Anderson - Total expenses related to the Company's license agreements with MD Anderson were $32,000 and $63,000 for the three months ended September 30, 2025 and 2024, respectively, and $115,000 and $$180,000 for the nine months ended September 30, 2025 and 2024, respectively. In October 2025, the Company entered into two separate options to license certain intellectual property related to WP1122 and a new formulation on WP1066. Such licenses are tied to continue support of sponsored research at MD Anderson discussed below.

HPI - The Company has an agreement with Houston Pharmaceuticals, Inc. (HPI), a related party, with total expenses of $15,000 for each of the three months ended September 30, 2025 and 2024, and $45,000 and $176,000 for the nine months ended September 30, 2025 and 2024, respectively.

Sponsored Research Agreements - The expenses recognized under the agreements were $11,000 and $767,000 for the three months ended September 30, 2025 and 2024, respectively, and $324,000 and $1,300,000 for the nine months ended September 30, 2025 and 2024, respectively. The Company entered into a research agreement with MD Anderson until 2027. Such research supports the development efforts of the Company's three core technologies.