Leases

6 Months Ended

Jun. 30, 2025

Note 6. Leases

In January 2024, the Medolla Lease Agreement for the office space was renegotiated. The new Medolla Lease Agreement includes an additional space and commenced on February 1, 2024, and will end on January 31, 2030, substituting the Medolla Lease Agreement commenced in June 2018.

The Company recognizes lease expense on a straight-line basis over the term of its operating lease. During the three and six months ended June 30, 2025, the Company recorded lease expense of $38 thousand and $76 thousand, respectively. During the three and six months ended June 30, 2024, the Company recorded lease expense of $34 thousand and $64 thousand, respectively.

Supplemental balance sheet information related to leases as follows (in thousands except lease terms and discount rates):


	June 30, 2025			December 31, 2024
Assets:
Operating lease right of use asset, net	$	507		$	498
Liabilities:
Short-term operating lease liability		112			96
Long-term operating lease liability		387			394
Total lease liabilities	$	499		$	490

Other information:
Weighted average remaining lease term	4.2 years			4.6 years
Weighted average discount rate		9.12	%		9.11	%

Future minimum lease payments under lease agreements as of June 30, 2025, were as follows (in thousands):


Fiscal Year
2025 (remainder of the year)	$	152
2026		149
2027		142
2028		128
2029		101
Total lease payments		672
Less: imputed interest		(173	)
Total remaining lease liability	$	499