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LEASES

3 Months Ended

Mar. 31, 2025

NOTE 8 – LEASES

The Company leases office space domestically under operating leases including: (1) the Company’s headquarters in New York, New York for which the lease expires in 2028, (2) a marketing and sales center in Huntington Beach, California for which the lease expires in 2027, (3) a patient care center in Greenville, South Carolina for which the lease expires in 2032, with an additional five year option to extend, for which the Company expects to utilize, and (4) a warehouse and pharmacy operations center in Lancaster, Pennsylvania for which the lease expires in 2029, with an additional five year option to extend, for which the Company expects to utilize. WorkSimpli leases two office spaces in Puerto Rico for which the leases expire in 2026.

The following is a summary of the Company’s operating right-of-use assets and operating lease liabilities as of March 31, 2025:


Right-of-use assets	$	6,104,863
Current operating lease liabilities	$	482,139
Noncurrent operating lease liabilities	$	6,186,692

The table below reconciles the undiscounted future minimum lease payments under the above noted operating leases to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of March 31, 2025:


Fiscal year 2025	$	815,001
Fiscal year 2026		1,336,326
Fiscal year 2027		1,228,388
Fiscal year 2028		928,515
Fiscal year 2029		769,335
Thereafter		5,767,770
Less: imputed interest		(4,176,504	)
Present value of operating lease liabilities	$	6,668,831

Operating lease expenses were approximately $411 thousand and $226 thousand for the three months ended March 31, 2025 and 2024, respectively, and were included in other operating expenses in our unaudited condensed consolidated statement of operations.

Supplemental cash flow information related to operating lease liabilities consisted of the following:

	March 31,
	2025		2024
Cash paid for operating lease liabilities	$	216,554	$	227,028

Supplemental balance sheet information related to operating lease liabilities consisted of the following:

	March 31, 2025			December 31, 2024
Weighted average remaining lease term in years		10.37			10.39
Weighted average discount rate		10.94	%		10.96	%

Additionally, the Company utilizes office space in Puerto Rico on a month-to-month basis incurring rental expense of approximately $3 thousand per month.