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 year ended December 31, 2025 and 2024, the Company recorded lease expense of $0.2 million and $0.1 million, respectively.

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

 

 

December 31, 2025

 

 

December 31, 2024

 

Assets:

 

 

 

 

 

 

Operating lease right of use asset, net

 

$

453

 

 

$

498

 

Liabilities:

 

 

 

 

 

 

Short-term operating lease liability

 

 

115

 

 

 

96

 

Long-term operating lease liability

 

 

330

 

 

 

394

 

Total lease liabilities

 

$

445

 

 

$

490

 

 

 

 

 

 

 

 

Other information:

 

 

 

 

 

 

Weighted average remaining lease term

 

3.7 years

 

 

4.6 years

 

Weighted average discount rate

 

 

9.12

%

 

 

9.11

%

 

Future minimum lease payments under lease agreements as of December 31, 2025, were as follows (in thousands):

 

Fiscal Year

 

 

 

2026

 

$

149

 

2027

 

 

142

 

2028

 

 

128

 

2029 and thereafter

 

 

101

 

Total lease payments

 

 

520

 

Less: imputed interest

 

 

(75

)

Total remaining lease liability

 

$

445

 

Historical Timeline

Fiscal YearFiled
2025Apr 10, 2026Showing above
2024Mar 24, 2025
2023Apr 1, 2024
2022Mar 15, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 16, 2020

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.