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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

NOTE 6 – Commitments and Contingencies

 

Office Lease

 

Effective November 2023, the Company leased office space for a two-year term. The Company’s office lease contained a renewal option. The Company evaluated several factors in assessing whether there is reasonable certainty that the Company will exercise its contractual renewal option concluding that it is not reasonably certain to exercise such option. As it is not reasonably certain to be exercised, the Company excluded the renewal term in determining the lease term used in calculating the ROU asset and lease liability. In December 2024, the landlord notified the Company that it will be closing its operations at the Company’s location and offered to relocate the Company to a new location. The Company agreed to relocate and accordingly, on December 9, 2024, the Company and the landlord entered into a new lease agreement (the “December 2024 Lease”). Pursuant to the December 2024 Lease, effective December 20, 2024, the Company leased office space for a term of 14 months, expiring on February 28, 2026. Pursuant to the December 2024 Lease, the Company is required to pay a monthly base rent of $2,732 from March 1, 2025 through February 2026. In connection with December 2024 Lease, in December 2024, the Company increased ROU assets and lease liabilities by $31,075 and removed all remaining ROU assets and lease liabilities associated with the November 2023 lease.

 

The table below presents certain information related to the Company’s lease costs, which are included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operation and comprehensive loss.

 

   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
   2025   2024   2025   2024 
Operating lease expense  $7,124   $5,615   $14,539   $14,232 
Short-term lease expense   5,715    5,840    11,375    10,493 
Total lease cost  $12,839   $11,455   $25,914   $24,725 

 

ROU asset for operating leases was recorded in the condensed consolidated balance sheets as follows:

 

   June 30,
2025		   December 31,
2024		 
Office lease ROU asset  $31,075   $31,075 
Less: accumulated amortization   (12,994)   
-
 
Total ROU asset, net  $18,081   $31,075 

 

Operating lease liability for operating leases was recorded in the condensed consolidated balance sheets as follows:

 

   June 30,
2025		   December 31,
2024		 
Current portion of operating lease liability  $21,326   $28,366 
Long-term portion of operating lease liability   
-
    2,709 
Total operating lease liability  $21,326   $31,075 

 

Supplemental cash flow information related to the Company’s leases for the six months ended June 30, 2025 was as follows:

 

Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows for operating leases  $2,732 

The weighted-average remaining lease term for the operating lease is 0.67 years and the weighted-average incremental borrowing rate is 10% as of June 30, 2025 and December 31, 2024.

 

As of June 30, 2025, future annual minimum lease payments required under operating leases are as follows:

 

2025 (remainder of year)  $16,392 
2026   5,750 
Total minimum lease payments   22,142 
Less: effects of discounting   (816)
Present value of future minimum lease payments  $21,326 

 

Other

 

On December 23, 2024, the Company provided notice to Isoprene Pharmaceutical, Inc. (“Isoprene”) of its intent to terminate the exclusive license agreement (the “Isoprene Agreement”) by and between the Company and Isoprene dated July 2, 2021. The Isoprene Agreement terminated on March 23, 2025.