LEASES |
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Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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LEASES | NOTE 16 – LEASES
The Company entered into a warehouse lease in October 2023. The Company determined that the new lease required measurement and recognition of the lease liability and right-of-use assets of $351,581. 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 September 30, 2024.
For the three months ended September 30, 2024, and 2023, total operating lease expense was $28,034 and $75,496, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations, as well as $62,656 from discontinued operations, respectively.
For the nine months ended September 30, 2024, and 2023, total operating lease expense was $53,715 and $226,488, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations, as well as $187,968 from discontinued operations, respectively.
For the three months ended September 30, 2024, and 2023, total short-term lease expense was $0 and $6,010, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations, respectively.
For the nine months ended September 30, 2024, and 2023, total short-term lease expense was $10,228 and $20,049, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations, respectively.
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