Leases

The Company determines whether an arrangement is a lease at inception. The Company leases office space in a shared office location in Framingham, Massachusetts. As this lease had a term of 6 months at inception, the Company did not apply the provisions of ASU 2016-02 and will account for it as an operating lease. As of December 31, 2024, total minimum lease payments on this lease were approximately $3,000.

The Company did not apply the provisions of ASU 2016-02 to the lease of its office space in Miami, Florida as this lease had a term of 12 months at inception. As a result, the Company accounts for it as an operating lease. This lease was terminated in November 2024 and no further minimum lease payments are due.

Letter of Credit

As of December 31, 2024, the Company has an outstanding letter of credit of approximately $0.1 million in support of an intercompany loan with its Hesperix subsidiary. As the intercompany loan is eliminated in consolidation, the letter of credit has no effect on the consolidated financial statements.