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LEASES
 12 Months Ended
Dec. 31, 2024
Leases  
LEASES

NOTE 7—LEASES

 

Operating Leases

 

During 2021, the Company entered into a lease agreement for a medical clinic office located in Provo, Utah. The lease commenced on March 1, 2021, and is for a term of 58 months. The monthly base rent is $400 with scheduled increases. The lease agreement contains customary events of default, representations, warranties, and covenants. The lease increased the operating lease right-of-use asset and corresponding operating lease liability by $19,364

 

During 2021, the Company entered into a lease agreement for a medical clinic office located in Bountiful, Utah. The lease commenced on June 1, 2021, and is for a term of 48 months. The monthly base rent is $1,152 with scheduled increases. The lease agreement contains customary events of default, representations, warranties, and covenants. The lease increased the operating lease right-of-use asset and corresponding operating lease liability by $42,617.

 

 

During 2022, the Company entered into a lease agreement for medical clinic and corporate office located in Murray, Utah. The lease commenced on October 1, 2022, and is for a term of 52 months. The monthly base rent is $6,873 with scheduled increases. The lease agreement contains customary events of default, representations, warranties, and covenants. The lease increased the operating lease right-of-use asset and corresponding operating lease liability by $241,241.

 

During 2023, the Company entered into a lease amendment to renew its medical clinic office located in Millcreek, Utah. The lease renewal commenced on July 1, 2023, and is for a term of 12 months. The monthly base rent is $2,350. The lease agreement contains customary events of default, representations, warranties, and covenants. The remeasurement of the ROU asset and liability associated with this operating lease was $26,036.

 

During 2023, the Company entered into a lease amendment to renew its medical clinic office located in Ogden, Utah. The lease renewal commenced on September 1, 2023, and is for a term of 12 months. The monthly base rent is $978. The lease agreement contains customary events of default, representations, warranties, and covenants. The remeasurement of the ROU asset and liability associated with this operating lease was $10,839.

 

During 2024, the Company entered into a lease amendment to renew its medical clinic office located in Millcreek, Utah. The lease renewal commenced on August 1, 2024, and is for a term of 12 months. The monthly base rent is $2,400. The lease agreement contains customary events of default, representations, warranties, and covenants. The remeasurement of the ROU asset and liability associated with this operating lease was $27,724.

 

During 2024, the Company entered into a lease for a medical clinic office located in Ogden, Utah. The lease commenced on December 1, 2024, and is for a term of 86 months. The monthly base rent is $6,211. The lease agreement contains customary events of default, representations, warranties, and covenants. The remeasurement of the ROU asset and liability associated with this operating lease was $461,946.

 

The following was included in the balance sheets at December 31, 2024 and 2023:

 

   2024   2023 
   December 31, 
   2024   2023 
Operating lease right-of-use assets  $641,651   $235,706 
           
Operating lease liabilities, current portion   138,743    94,696 
Operating lease liabilities, long-term   496,017    164,295 
Total operating lease liabilities  $634,760   $258,991 
           
Weighted-average remaining lease term (years)   5.8    3.5 
Weighted average discount rate   9.0%   15.0%

 

The components of net lease expense consisted of the following for the years ended December 31, 2024 and 2023:

 

   2024   2023 
   December 31, 
   2024   2023 
Operating lease expense  $139,390   $157,043 
Variable lease expense   8,365    24,419 
Total lease expense   147,755    181,462 
Sublease (income)   -    (3,148)
Total net lease expense  $147,755   $178,314 

 

Cash payments included in the measurement of operating lease liabilities were $149,029 and $135,923 for the years ended December 31, 2024 and 2023, respectively.

 

 

Maturities of operating lease liabilities at December 31, 2024 were as follows:

 

Year Ending December 31,  Amount 
2025  $187,988 
2026   164,150 
2027   86,366 
2028   87,444 
2029   83,886 
Thereafter   175,400 
Total   785,234 
Less: imputed interest   (150,474)
Total operating lease liabilities  $634,760 

 

Finance Leases

 

On April 22, 2024, the Company entered into an equipment financing lease to purchase medical equipment for $10,976, which matures in July 2029.

 

The following was included in the balance sheets at December 31, 2024 and 2023:

 

   2024   2023 
   December 31, 
   2024   2023 
Leased medical equipment (property and equipment)  $10,976   $- 
Less: accumulated depreciation   (1,646)   - 
Total leased medical equipment, net  $9,330   $- 
           
Finance lease liabilities, current portion   2,030    - 
Finance lease liabilities, long-term   7,615    - 
Total finance lease liabilities  $9,645   $- 
           
Weighted-average remaining lease term (years)   4.6    - 
Weighted average discount rate   2.0%   - 

 

Maturities of finance lease liabilities at December 31, 2024, were as follows:

 

Year Ending December 31,  Amount 
2025  $2,204 
2026   2,204 
2027   2,204 
2028   2,204 
2029   1,285 
Total   10,101 
Less: amount representing interest   (456)
Total finance lease liabilities  $9,645