13. Operating Leases

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate (“IBR”) based on the information available at the lease commencement date to determine the appropriate discount rate by multiple asset classes. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term. Rent expense was $4,467 and $4,444 for the years ended December 31, 2025 and 2024, respectively.

The Company leases a facility consisting of office, manufacturing and laboratory space in Florham Park, New Jersey under a lease expiring in 2036. The Company has the option to renew the term of the lease for two additional five-year terms so long as the lease is then in full force and effect; both option periods have been included in determining the lease term used in recognizing the ROU assets and lease liability.

The Company includes its lease costs within selling, general and administrative expenses on the consolidated statement of operations and comprehensive loss. The components of the Company’s lease costs as follows:

 Schedule of Lease Costs

The table below shows the cash activity related to the Company’s lease liabilities:

 Schedule of Cash Activity Related to the Lease Liabilities

As of December 31, 2025, the maturities of the Company’s operating lease liabilities were as follows:

 Schedule of Future Minimum Payments under Operating Leases

As of December 31, 2025 and 2024, the weighted average remaining lease term of the Company’s operating lease was 20.3 years, and 21.3, and the weighted average discount rate used to determine the lease liability for the operating lease was 14.24% and 14.24%, respectively.