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:

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:

SCHEDULE OF COMPANY’S OPERATING LEASE

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:

SCHEDULE OF OPERATING LEASE TERM

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:

SCHEDULE OF COMPONENTS OF LEASE EXPENSE

	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.