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LEASES

9 Months Ended

Sep. 30, 2025

NOTE 10 – LEASES

The Company leases office spaces 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 September 30, 2025:


Right-of-use assets	$	5,578,992
Current operating lease liabilities	$	673,482
Noncurrent operating lease liabilities	$	5,851,673

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 September 30, 2025:


Fiscal year 2025	$	298,556
Fiscal year 2026		1,333,216
Fiscal year 2027		1,225,154
Fiscal year 2028		925,152
Fiscal year 2029		765,837
Thereafter		5,858,722
Less: imputed interest		(3,881,482	)
Present value of operating lease liabilities	$	6,525,155

Operating lease expenses were approximately $415 thousand and $289 thousand for the three months ended September 30, 2025 and 2024, respectively, and $1.2 million and $747 thousand for the nine months ended September 30, 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:

	September 30,
	2025		2024
Cash paid for operating lease liabilities	$	655,253	$	615,281

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

	September 30, 2025			December 31, 2024
Weighted average remaining lease term in years		10.26			10.39
Weighted average discount rate		10.90	%		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.