In June 2021, the Company entered into a 5-year lease agreement (the “Greenhill Lease”) for its Australian facility located in Dulwich, South Australia. The initial term of the lease expires in May 2026.

The Company accounts for its leases under ASC 842, Leases ("ASC 842"), recognizing right-of-use ("ROU") assets and corresponding lease liabilities for operating leases on the condensed consolidated balance sheet. The ROU asset is initially measured based on the present value of future lease payments and subsequently amortized over the lease term.

During the three months ended December 31, 2025, the Company committed to a plan to exit its Australian facility as part of a restructuring plan as approved by the Company's board of directors (see Note 1 and Note 3). The leased facility will no longer be used for any business purpose, the Company does not intend to sublease the space. Accordingly, under ASC 360, Property, Plant, and Equipment, and ASC 842, the carrying value of the associated right-of-use asset was evaluated for abandonment, and the remaining carrying amount of less than $0.1 million was derecognized. The lease liability of approximately $0.1 million was also derecognized.

The resulting write-off of the right-of-use asset is recorded in Restructuring costs in the condensed consolidated statements of operations and other comprehensive income (loss) for three and six months ended December 31, 2025.

Variable lease expense for the premises primarily consisted of common area maintenance and other operating costs.

The following table summarizes the Company’s recognition of the Greenhill Lease including the remaining lease payments through the end of the expected lease term, all of which are reflected in accrued restructuring expenses at December 31, 2025 (see Note 9):


	December 31,
	2025
Remainder of fiscal year 2026	$	55,547
Less: derecognition of lease liability due to restructuring		(55,547	)
Present value of lease liability	$	-

The discount rate associated with the Company’s operating lease was 3.5% and the weighted average remaining lease term for the remaining lease payments was approximately 0.4 years at December 31, 2025.

The following table summarizes the effect of lease costs in the Company’s condensed consolidated statements of operations and other comprehensive income (loss) prior to the above-referenced restructuring event:


	Three Months Ended December 31,				Six Months Ended December 31,
	2025		2024		2025		2024
Operating lease costs
Research and development	$	28,749	$	15,197	$	28,749	$	28,280
General and administrative		36,536		16,700		36,536		33,806
Total	$	65,285	$	31,897	$	65,285	$	62,086