8. LEASES

The Company has the following operating leases:

Location

 

Primary Use

 

Lease
Expiration Date

 

Renewal Option

Copenhagen, Denmark

 

Corporate headquarters

 

November 2029

 

None

The Company has no finance leases and has elected to apply the short-term lease exception to all leases of one year or less. Rent expense for years ended December 31, 2025 and 2024 was $54,000 and $254,000, respectively.

Quantitative information regarding the Company’s leases for the years ended December 31, 2025 and 2024 is as follows (in thousands):

 

 

Year Ended
December 31,

 

Lease Cost:

 

2025

 

 

2024

 

Operating lease cost

 

$

20

 

 

$

224

 

 

 

 

 

 

 

 

Other Information:

 

 

 

 

 

 

Operating cash flows paid for amounts included in the
   measurement of lease liabilities

 

$

20

 

 

$

223

 

Operating lease liabilities arising from obtaining right-of-use
   assets

 

$

 

 

$

 

As of December 31, 2025 and 2024, the weighted average remaining lease term for operating leases was 3.9 years and 4.9 years, respectively.

As of December 31, 2025 and 2024, the weighted average discount rate for operating leases was 8% for both periods.

Operating lease liabilities are as follows at December 31, 2025 (in thousands):

 

 

Operating
Leases

 

2026

 

$

20

 

2027

 

 

20

 

2028

 

 

20

 

2029

 

 

19

 

2030

 

 

 

Total lease payments

 

 

79

 

Less: imputed interest

 

 

(11

)

Total lease liabilities

 

$

68

 

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 19, 2025
2023Mar 8, 2024
2022Mar 9, 2023
2021Feb 17, 2022
2020Mar 29, 2021

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.