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LEASES

6 Months Ended

Jun. 30, 2025

6. LEASES

The Company has operating leases consisting of office space, lab space and equipment with remaining lease terms of 1 to 3 years, subject to certain renewal options as applicable.

The Company evaluates the nature of each lease at the inception of an arrangement to determine whether it is an operating or financing lease and recognizes the right of use asset and lease liability based on the present value of future minimum lease payments over the expected lease term. The Company’s leases do not generally contain an implicit interest rate and therefore the Company uses the incremental borrowing rate it would expect to pay

to borrow on a similar collateralized basis over a similar term in order to determine the present value of its lease payments.

On May 22, 2025, the Company renewed its lease for research & development, engineering, testing and corporate offices in Manchester, England. The renewed lease term expires in 2028 with an option for the Company to end the lease in 2027.

The Company is not the lessor in any lease agreement, and no related party transactions for lease arrangements have occurred.

The table below presents certain information related to the lease costs for the Company’s operating leases for the periods ended:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Operating lease cost	$	68	$	70	$	141	$	135
Short-term lease cost		9		—		12		6
Total lease cost	$	77	$	70	$	153	$	141

The total lease cost is included in the unaudited condensed consolidated statements of operations as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Research and development	$	75	$	70	$	148	$	135
General and administrative		2		—		5		6
Total lease cost	$	77	$	70	$	153	$	141

Right of use lease assets and lease liabilities for the Company’s operating leases were recorded in the unaudited condensed consolidated balance sheet as follows:


	June 30,		December 31,
(in thousands)	2025		2024
Assets
Right of use assets - Operating Leases	$	678	$	120
Total lease assets	$	678	$	120

Liabilities
Current liabilities:
Lease liability, current - Operating Leases	$	243	$	47
Noncurrent liabilities:
Lease liability, non-current - Operating Leases		421		25
Total lease liabilities	$	664	$	72

The Company had no right of use lease assets or lease liabilities classified as financing leases as of June 30, 2025 and December 31, 2024.

The table below presents certain information related to the cash flows for the Company’s operating leases for the periods ended:

The table below presents certain information related to the weighted average remaining lease term and the weighted average discount rate for the Company’s operating leases as of the period ended:


	June 30,
	2025
Weighted average remaining lease term (in years) – operating leases		2.7
Weighted average discount rate – operating leases		10.63%

Remaining maturities of the Company’s operating leases, excluding short-term leases, are as follows:


	June 30,
(in thousands)	2025
2025	$	150
2026		312
2027		293
2028		12
Total undiscounted lease payments		767
Less imputed interest		(103)
Total net lease liabilities	$	664

June 30,

(in thousands)

Operating cash outflows from operating leases

Supplemental non-cash amounts of operating lease liabilities arising from obtaining right of use assets