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LEASES | 6 Months Ended
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Jun. 30, 2025
Leases |
LEASES | NOTE 15. LEASES The Company has various lease agreements with terms up to 20 years. All the leases are classified as operating leases. Maturity of lease liabilities under our non-cancellable operating leases as of June 30, 2025 were as follows: SCHEDULE OF MATURITY OF LEASE LIABILITIES
Payments due by period |  |  |
2025 (remaining six months) |  | $ | 2,121,007 |
2026 |  |  | 3,923,741 |
2027 |  |  | 2,956,171 |
2028 |  |  | 2,280,186 |
2029 |  |  | 1,617,808 |
Thereafter |  |  | 824,584 |
Total undiscounted operating lease payments |  | $ | 13,723,497 |
Less: Imputed interest |  |  | (1,308,790 | )
Present value of operating lease liabilities |  | $ | 12,414,707 |
The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE
Balance Sheet Classification |  | June 30, 2025 |  |  | December 31, 2024 |
Right of use assets |  | $ | 12,386,466 |  |  | $ | 14,232,240 |
Operating lease liability, current |  | $ | 3,687,002 |  |  | $ | 3,596,987 |
Operating lease liability, net of current |  |  | 8,727,705 |  |  |  | 10,584,431 |
Total operating lease liabilities |  | $ | 12,414,707 |  |  | $ | 14,181,418 |
The amortization of the right-of-use assets of approximately $1,846,000 and $1,438,000 for the six months ended June 30, 2025 and 2024, respectively, were included in operating cash flows. The following table provides a summary of other information related to the leases at June 30, 2025 and December 31, 2024: SCHEDULE OF OPERATING LEASE TERM
Other Information |  | June 30, 2025 |  |  | December 31, 2024 |
Weighted-average remaining lease term for operating leases |  |  | 4 years |  |  |  | 4 years |
Weighted-average discount rate for operating leases |  |  | 5.24 | % |  |  | 5.19 | %
Rent expense for the three months ended June 30, 2025 and 2024 was approximately $974,000 and $940,000, respectively. Rent expense for the six months ended June 30, 2025 and 2024 was approximately $1,951,000 and $1,864,000, respectively. It is included in selling, general and administrative expenses in the accompanying condensed consolidated carve-out statements of operations. The components of lease expenses for the three and six months ended June 30, 2025 and 2024 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Operating lease cost |  | $ | 864,402 |  |  | $ | 643,036 |  |  | $ | 1,719,038 |  |  | $ | 1,280,138 |
Variable lease cost |  |  | 46,163 |  |  |  | 218,165 |  |  |  | 104,950 |  |  |  | 425,711 |
Short-term lease cost |  |  | 63,758 |  |  |  | 79,291 |  |  |  | 126,736 |  |  |  | 157,823 |
Total rent expense |  | $ | 974,323 |  |  | $ | 940,492 |  |  | $ | 1,950,724 |  |  | $ | 1,863,672 |
The aggregate cash payments under the leasing arrangement were approximately $1,767,000 and $1,365,000 for the six months ended June 30, 2025 and 2024, respectively, were included in operating cash flows.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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