Leases |
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| Leases | Note 4. Leases
On November 1, 2022, the Company entered into an operating sublease with a related party Dream Go for its office space located at 450 7th Avenue, Suite 905, New York, NY 10123 expiring on October 31, 2029. On November 1, 2022, the Company recognized approximately $2.2 million of right of use (“ROU”) assets and operating lease liabilities based on the present value of the future minimum rental payments of the sublease, using an incremental borrowing rate of 4%.
As of March 31, 2025, the Company’s operating sublease had a remaining lease term of approximately 4.6 years.
For the three months ended March 31, 2025 and 2024, rent expense for the operating sublease was $90,253 and $90,253, respectively.
The Company’s sublease obligations as of March 31, 2025 are presented below:
Future amortization of the Company’s ROU assets is presented below:
Subleases
On November 1, 2022, the Company entered into sublease agreements with related parties (1) Dream Legal Group, Inc., (2) Tigerless Health, Inc., and (3) First Cover, Inc. to sub rent portions of its office space located at 450 7th Avenue, Suite 905, New York, NY 10123. These subleases are month-to-month leases starting on November 1, 2022 and ending upon a notice of 30 days from either party.
On July 1, 2024, the Company terminated the subleases with Tigerless Health, Inc, and First Cover, Inc. Sublease income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in due from related parties which are stated at their estimated net realizable value. For the three months ended March 31, 2025 and 2024, the Company’s income from these three subleases totaled $24,854 and $15,000 (which has been reflected as a reduction of general and administrative expenses in the accompanying consolidated Statements of Operations). |
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