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LEASES

3 Months Ended

Mar. 31, 2025

NOTE 13 – LEASES

The Company entered into a lease agreement for the period of October 2018 to November 2023. At inception, management had included the renewal period from November 2023 to November 2028 within the initial recognition of the related right of use assets and lease liabilities, as it was reasonably expected, at the time, that the renewal option would be exercised. The Company determined that the new lease required measurement and recognition of the lease liability and right-of-use assets of $313,301. The lease is classified as an operating lease. No incentives were included in the lease.

On July 25, 2024, the Company entered into and closed the Scienture Merger Agreement. Pursuant to the Scienture Merger Agreement, the Company acquired right of use asset value of $61,578 and right of use liability of $61,886 on the acquisition date together with all the assets and liabilities of Scienture.

The table below reconciles the fixed component of the undiscounted cash flows for and the total remaining years to the lease liabilities recorded in the consolidated balance sheet as of March 31, 2025.

Supplemental balance sheet information related to leases are as follows:

	March 31, 2025			December 31, 2024
Weighted-average remaining lease term (in years)		3.23			3.48
Weighted-average discount rate		10.90	%		10.90	%

Future lease obligations
2025 remaining	$	62,777
2026		73,084
2027		56,919
2028		48,612
Total minimum lease payments		241,392
Less: effect of discounting		(36,630	)
Present value of future minimum lease payments		204,762
Less: current obligation under lease		65,843
Long-term lease obligations	$	138,919

For the three months ended March 31, 2025, and 2024, total operating lease expense was $36,402 and $12,840, respectively, which is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.