XML 35 R22.htm IDEA: XBRL DOCUMENT v3.26.1
LEASES
 3 Months Ended
Mar. 31, 2026
Leases  
LEASES

NOTE 14 – 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 April 30, 2025, the Company completed the sale of its subsidiaries, IPS, Softell and Bonum Health, Inc., to Tollo. In connection with the transaction, the Company derecognized subsidiary’s operating lease right-of-use assets of $142,138 and operating lease liability of $158,687 (see Note 1). As such, the Company recognized a gain of $16,548 on disposition of related IPS lease.

 

On July 25, 2024, the Company entered into and closed the Scienture Merger. 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, 2026.

 

Supplemental balance sheet information related to leases are as follows:

 

   March 31,   December 31, 
   2026   2025 
Weighted-average remaining lease term (in years)   0.33    0.58 
Weighted-average discount rate   15.50%   15.50%

 

Future lease obligations     
2026  $10,184 
Total minimum lease payments   10,184 
Less: effect of discounting   (180)
Present value of future minimum lease payments   10,004 
Less: current obligation under lease   10,004 
Long-term lease obligations  $- 

 

For the three months ended March 31, 2026, and 2025, total operating lease expense was $6,772 and $36,402, respectively, which is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.