Quarterly report [Sections 13 or 15(d)]

Note 9 - Leases

Note 9 - Leases

3 Months Ended

Mar. 31, 2025

Lessee, Operating and Finance Leases [Text Block]

9. Leases

As of March 31, 2025, the Company maintained one finance lease for equipment and two operating leases for real estate. The operating leases have current terms of 36 and 37 months and include one or more options to extend the duration of the agreements. These operating leases are included in "Other assets" on the Company's condensed consolidated balance sheets and represent the Company's right to use the underlying assets for the term of the leases. The Company's obligation to make lease payments are included in "Lease liability, current portion" and "Lease liability, non-current portion" on the Company's condensed consolidated balance sheets.

On March 14, 2024, the Company extended its operating lease for its headquarters located at 5370 Kietzke Lane, Reno, NV. The lease extension was determined to be a lease modification that qualified as a change of accounting on the existing lease and not a separate contract. As such, the Right-of-Use (“ROU”) assets and operating lease liabilities were remeasured using an incremental borrowing rate at the date of modification of 9.61%, which resulted in an increase of the ROU asset of $170,000 and an increase in the operating lease liabilities of $166,000.

On June 9, 2024, the Company extended its operating lease for its Innovation Center located at 160 Denmark Dr, McCarran, NV. The lease extension was determined to be a lease modification that qualified as a change of accounting on the existing lease and not a separate contract. As such, the Right-of-Use (“ROU”) assets and operating lease liabilities were remeasured using an incremental borrowing rate at the date of modification of 9.52%, which resulted in an increase of the ROU asset of $347,000 and an increase in the operating lease liabilities of $324,000.

The Company currently maintains one finance lease for equipment. On April 1, 2024 the Company entered into a finance lease for laboratory equipment which expires in 2029. In November 2021, the Company entered into a finance lease for a modular laboratory which expired in October 2024.

Information related to the Company's right-of-use assets and related lease liabilities were as follows (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Cash paid for operating lease liabilities	$	73	$	68
Operating lease cost	$	72	$	67

Cash paid for finance lease liabilities	$	12	$	14
Interest expense	$	2	$	1

	March 31, 2025			March 31, 2024
Weighted-average remaining lease term (years) - operating leases		1.9			1.4
Weighted-average discount rate - operating leases		10.50	%		9.18	%

Weighted-average remaining lease term (years) - finance leases		4.0			1.6
Weighted-average discount rate - finance leases		4.85	%		8.17	%

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—		$	170

Future maturities of lease liabilities as of March 31, 2025 are as follows (in thousands):

Due in 12-month period ended March 31,
	Operating Leases			Finance Leases
2025	$	292		$	47
2026		145			47
2027		111			47
2028		—			48
Less imputed interest		(57	)		(16	)
Total lease liabilities	$	491		$	173

Current lease liabilities	$	256		$	40
Non-current lease liabilities		235			133
Total lease liabilities	$	491		$	173