Accrued licensing fees of $750 thousand as of June 30, 2026 represents the amount due for achievement of the Statera milestone, validation of current inventory of Materials for distribution and sales. Pursuant to the terms of the license agreement, as further described in Note 9, Statera License Agreement, milestone payments may be paid in cash or equity at the Company's discretion.  On July 31, 2026, the Company issued an aggregate of 1,288 shares of its Series A Preferred Stock to Avenue and Statera in full settlement of the $750 thousand liability.