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LEASES
9 Months Ended
Sep. 30, 2024
Leases  
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.

  

Future lease obligations    
2024 remaining  $20,633 
2025   83,538 
2026   73,084 
2027   56,919 
2028   48,612 
Total minimum lease payments   282,786 
Less: effect of discounting   (48,538)
Present value of future minimum lease payments   234,248 
Less: current obligation under lease   60,882 
Long-term lease obligations  $173,366 

 

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.