v3.25.2
LEASES
3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
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 March 31, 2025 were as follows:

 SCHEDULE OF MATURITY OF LEASE LIABILITIES

Payments due by period   
2025 (remaining nine months)  $3,171,587 
2026   3,833,066 
2027   2,956,171 
2028   2,280,186 
2029   1,617,808 
Thereafter   824,584 
Total undiscounted operating lease payments  $14,683,402 
Less: Imputed interest   (1,379,778)
Present value of operating lease liabilities  $13,303,624 

 

The following table summarizes the Company’s operating leases:

 SCHEDULE OF COMPANY’S OPERATING LEASE

Balance Sheet Classification 

March 31, 2025

   December 31, 2024 
Right of use assets  $13,314,626   $14,232,240 
           
Operating lease liability, current  $3,641,723   $3,596,987 
Operating lease liability, net of current   9,661,901    10,584,431 
Total operating lease liabilities  $13,303,624   $14,181,418 

 

The amortization of the right-of-use assets of approximately $918,000 and $716,000 for the three months ended March 31, 2025 and 2024, respectively, were included in operating cash flows.

 

The following table provides a summary of other information related to the leases at March 31, 2025 and December 31, 2024:

 SCHEDULE OF OPERATING LEASE TERM

Other Information  March 31, 2025   December 31, 2024 
Weighted-average remaining lease term for operating leases   4 years    4 years 
Weighted-average discount rate for operating leases   5.21%   5.19%

 

Rent expense for the three months ended March 31, 2025 and 2024 was approximately $976,000 and $923,000, 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 months ended March 31, 2025 and 2024 were as follows:

 SCHEDULE OF COMPONENTS OF LEASE EXPENSE

           
   Three Months Ended March 31, 
   2025   2024 
Operating lease cost  $900,913   $637,101 
Variable lease cost   58,787    207,546 
Short-term lease cost   16,701    78,532 
Total rent expense  $976,401   $923,179 

 

The aggregate cash payments under the leasing arrangement were approximately $878,000 and $679,000 for the three months ended March 31, 2025 and 2024, respectively, were included in operating cash flows.

 

NOTE 17. LEASES

 

The Company has various lease agreements with terms of up to 20 years, including leases of retail stores, headquarters and equipment. All the leases are classified as operating leases.

 

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2024.

 

Maturity of Lease Liabilities by Fiscal Year    
2025  $4,221,590 
2026   3,923,741 
2027   2,956,171 
2028   2,280,186 
2029   1,617,808 
Thereafter   824,585 
Total undiscounted operating lease payments  $15,824,081 
Less: interest   (1,642,663)
Present value of operating lease liabilities  $14,181,418 

 

The following summarizes the Company’s operating leases:

 

Balance Sheet Classification 

December 31,

2024

  

December 31,

2023

 
Right of use assets  $14,232,240   $11,412,562 
           
Operating lease liability, current  $3,596,987   $2,748,824 
Operating lease liability, net of current   10,584,431    8,461,182 
Total operating lease liabilities  $14,181,418   $11,210,006 

 

The amortization of the right-of-use asset of approximately $3,274,000 and $2,570,000 for the years ended December 31, 2024 and 2023, respectively, were included in operating cash flows.

 

The following table provides a summary of other information related to the leases at December 31, 2024 and 2023:

 

Other Information  December 31, 2024   December 31, 2023 
Weighted-average remaining lease term for operating leases   4 years    5 years 
Weighted-average discount rate for operating leases   5.19%   3.98%

 

Rent expense for the years ended December 31, 2024 and 2023 was approximately $4,196,000 and $3,435,000, respectively, and is included in selling, general and administrative expenses in the accompanying consolidated statement of operations.

 

The following table represents the components of lease expense are as follows for twelve months ended December 31, 2024:

 

  

December 31,

2024

 
Operating lease cost  $3,273,563 
Variable lease cost   922,282 
Short-term lease cost   - 
Total rent expense  $4,195,845 

 

The aggregate cash payments under the leasing arrangement was approximately $3,122,000 for the year ended December 31, 2024 and was included in operating cash flows.