The Company has entered into operating leases for offices in Hayward, California and Los Angeles, California. On February 1, 2025, the Company entered into a lease agreement to extend the lease in Hayward through to 2027. Similarly, on November 14, 2025, the Company entered into a lease agreement to extend the lease in Los Angeles through to 2028. Both extensions were recognized as a modification to the existing leases. The lease modifications were not accounted for as a separate contract and instead the existing operating lease right-of-use assets and liabilities were remeasured during the period under agreements that expire in 2027 and 2028. Both leases contain options to extend for additional renewal periods. The leases require the Company to pay utilities, insurance, taxes, and other operating expenses. The Company’s lease does not contain any residual value guarantees or material restrictive covenants.

The tables below show the changes during the six months ended December 31, 2025:


(US$’000)	Operating lease right- of-use assets
Balance at July 1, 2025	$	860
Re-measurement during the period		256
Amortization of right of use asset		(211	)
Operating lease right-of-use asset at December 31, 2025	$	905


(US$’000)	Operating lease liabilities
Balance at July 1, 2025	$	849
Re-measurement during the period		256
Principal payments on operating lease liabilities		(118	)
Operating lease liabilities at December 31, 2025		987
Less:non-current portion		(519	)
Current portion at December 31, 2025	$	468

As of December 31, 2025, the Company’s operating leases have a weighted average lease term of 1.95 years and a weighted average discount rate of 6%. The leases’ options to extend are not included within the remaining lease term as the Company is currently not reasonably certain to exercise such options. The maturities of the operating lease liabilities are as follows:


(US$’000)	December 31, 2025
2026	$	512
2027		518
2028		16
Total operating lease payments		1,046
Less imputed interest		(59	)
Present value of operating lease liabilities	$	987

The Company recorded lease liabilities and right-of-use lease assets for the lease based on the present value of lease payments over the expected lease term, discounted using the Company’s incremental borrowing rate. The incremental borrowing rate was determined based on quoted rates by the Company’s business banker for collateralized debt with terms similar to the lease agreements.

Rent expense was $0.1 million and $0.2 million for the three and six months ended December 31, 2025, respectively, and $0.1 million for both the three and six months ended December 31, 2024. Rent expense is reported within general and administrative expenses on the consolidated statements of operations and comprehensive loss.