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LEASES (Tables) | 6 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
Summary of Components of Lease Expense | The components of lease expense were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease expense |  |  |  |  |  |  |
Rent - cost of services (1) | $ | 65,833 |  |  | $ | 51,456 |  |  | $ | 129,794 |  |  | $ | 96,560 |
General and administrative expense | 607 |  |  | 353 |  |  | 1,417 |  |  | 708 |
Variable lease costs (2) | 8,119 |  |  | 6,044 |  |  | 17,033 |  |  | 11,964 |
Total operating lease expense | $ | 74,559 |  |  | $ | 57,853 |  |  | $ | 148,244 |  |  | $ | 109,232 |
Finance lease expense |  |  |  |  |  |  |
Amortization of right-of-use assets | 322 |  |  | 313 |  |  | 645 |  |  | 620 |
Interest on lease liabilities | 736 |  |  | 198 |  |  | 1,476 |  |  | 330 |
Total financing lease expense | 1,058 |  |  | 511 |  |  | 2,121 |  |  | 950 |
Total Lease Expense | $ | 75,617 |  |  | $ | 58,364 |  |  | $ | 150,365 |  |  | $ | 110,182 |
__________________ (1)Rent - cost of services includes other variable lease costs such as Consumer Price Index (CPI) increases and other rent adjustments of $497 and $620 for the three months ended June 30, 2024 and 2023, respectively, and $1,035 and $1,578 for the six months ended June 30, 2024 and 2023, respectively. (2)Variable lease costs, including property taxes and insurance, are classified in Cost of services in the Company’s unaudited condensed combined/consolidated statements of (loss) income and comprehensive (loss) income The following table summarizes supplemental cash flow information related to leases:
| Six Months Ended June 30,
| 2024 |  | 2023
Operating cash paid for amounts included in the measurement of operating lease liabilities | $ | 116,026 |  |  | $ | 88,175 |
Operating cash paid for amounts included in the measurement of finance lease liabilities | 1,476 |  |  | 330 |
Financing cash paid for amounts included in the measurement of finance lease liabilities | 438 |  |  | 1,065 |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 259,201 |  |  | 557,412 |
Financing lease right-of-use assets obtained in exchange for lease liabilities | — |  |  | 2,028 |
Information relating to the lease term and discount rate is as follows:
| As of June 30, 2024
Weighted-average remaining lease term (years) |
Operating leases | 14
Financing leases | 2
Weighted-average discount rate |
Operating leases | 5.8 | %
Financing leases | 7.2 | %
Summary of Supplemental Cash Flow Related to Leases | The components of lease expense were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease expense |  |  |  |  |  |  |
Rent - cost of services (1) | $ | 65,833 |  |  | $ | 51,456 |  |  | $ | 129,794 |  |  | $ | 96,560 |
General and administrative expense | 607 |  |  | 353 |  |  | 1,417 |  |  | 708 |
Variable lease costs (2) | 8,119 |  |  | 6,044 |  |  | 17,033 |  |  | 11,964 |
Total operating lease expense | $ | 74,559 |  |  | $ | 57,853 |  |  | $ | 148,244 |  |  | $ | 109,232 |
Finance lease expense |  |  |  |  |  |  |
Amortization of right-of-use assets | 322 |  |  | 313 |  |  | 645 |  |  | 620 |
Interest on lease liabilities | 736 |  |  | 198 |  |  | 1,476 |  |  | 330 |
Total financing lease expense | 1,058 |  |  | 511 |  |  | 2,121 |  |  | 950 |
Total Lease Expense | $ | 75,617 |  |  | $ | 58,364 |  |  | $ | 150,365 |  |  | $ | 110,182 |
__________________ (1)Rent - cost of services includes other variable lease costs such as Consumer Price Index (CPI) increases and other rent adjustments of $497 and $620 for the three months ended June 30, 2024 and 2023, respectively, and $1,035 and $1,578 for the six months ended June 30, 2024 and 2023, respectively. (2)Variable lease costs, including property taxes and insurance, are classified in Cost of services in the Company’s unaudited condensed combined/consolidated statements of (loss) income and comprehensive (loss) income The following table summarizes supplemental cash flow information related to leases:
| Six Months Ended June 30,
| 2024 |  | 2023
Operating cash paid for amounts included in the measurement of operating lease liabilities | $ | 116,026 |  |  | $ | 88,175 |
Operating cash paid for amounts included in the measurement of finance lease liabilities | 1,476 |  |  | 330 |
Financing cash paid for amounts included in the measurement of finance lease liabilities | 438 |  |  | 1,065 |
Operating lease right-of-use assets obtained in exchange for lease liabilities | 259,201 |  |  | 557,412 |
Financing lease right-of-use assets obtained in exchange for lease liabilities | — |  |  | 2,028 |
Information relating to the lease term and discount rate is as follows:
| As of June 30, 2024
Weighted-average remaining lease term (years) |
Operating leases | 14
Financing leases | 2
Weighted-average discount rate |
Operating leases | 5.8 | %
Financing leases | 7.2 | %
Summary of Operating Lease Maturity | Maturities of lease liabilities as of June 30, 2024 were as follows:
| Finance Leases |  | Operating Leases |  | Total
2024 (remainder) | $ | 1,929 |  |  | $ | 116,501 |  |  | $ | 118,430 |
2025 | 23,560 |  |  | 232,133 |  |  | 255,693 |
2026 | 2,241 |  |  | 231,843 |  |  | 234,084 |
2027 | 17,995 |  |  | 229,876 |  |  | 247,871 |
2028 | 782 |  |  | 231,979 |  |  | 232,761 |
2029 | 391 |  |  | 233,208 |  |  | 233,599 |
Thereafter | — |  |  | 1,934,120 |  |  | 1,934,120 |
Total lease payments | $ | 46,898 |  |  | $ | 3,209,660 |  |  | $ | 3,256,558 |
Less: present value discount | (5,627) |  |  | (1,027,797) |  |  | (1,033,424) |
Present value of lease liabilities | $ | 41,271 |  |  | $ | 2,181,863 |  |  | $ | 2,223,134 |
Summary of Finance Lease Maturity | Maturities of lease liabilities as of June 30, 2024 were as follows:
| Finance Leases |  | Operating Leases |  | Total
2024 (remainder) | $ | 1,929 |  |  | $ | 116,501 |  |  | $ | 118,430 |
2025 | 23,560 |  |  | 232,133 |  |  | 255,693 |
2026 | 2,241 |  |  | 231,843 |  |  | 234,084 |
2027 | 17,995 |  |  | 229,876 |  |  | 247,871 |
2028 | 782 |  |  | 231,979 |  |  | 232,761 |
2029 | 391 |  |  | 233,208 |  |  | 233,599 |
Thereafter | — |  |  | 1,934,120 |  |  | 1,934,120 |
Total lease payments | $ | 46,898 |  |  | $ | 3,209,660 |  |  | $ | 3,256,558 |
Less: present value discount | (5,627) |  |  | (1,027,797) |  |  | (1,033,424) |
Present value of lease liabilities | $ | 41,271 |  |  | $ | 2,181,863 |  |  | $ | 2,223,134 |

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- Definition Tabular disclosure of undiscounted cash flows of finance lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to finance lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-6 + Details
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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-4 + Details
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- Definition Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-6 + Details
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