v3.25.2
Leases
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Leases
14. Leases

 

Accounting for Leases as Lessee

 

The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets (“ROU”), operating lease liabilities, and operating lease liabilities, non-current. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. None of the leases entered into have an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any prepaid lease payments made and initial direct costs incurred and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease, which is recognized when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. 

 

The Company has operating leases for real estate. The Company has certain intercompany leases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below. 

 

The components of lease expense included in the Company’s unaudited condensed statements of operations were as follows:

 

      For the Three Months Ended
March 31,		 
   Expense Classification  2025   2024 
Operating lease expense:           
Amortization of ROU asset  General and administrative  $41,757   $53,831 
Accretion of Operating lease liability  General and administrative   7,959    10,541 
Total operating lease expense     $49,716   $64,372 
              
Other lease expense  General and administrative   33,675    (2,026)
Total     $83,391   $62,346 

 

Other information related to leases is as follows:

 

   As of
March 31,		   As of
December 31,		 
   2025   2024 
Remaining lease term:        
Operating leases (in years)   8.63    8.77 
Discount rate:          
Operating leases   7.26%   7.25%

 

Amounts relating to leases were presented on the unaudited condensed Balance Sheets as of March 31, 2025 and December 31, 2024 in the following line items:

 

      As of
March 31,		   As of
December 31,		 
   Balance Sheet Classification  2025   2024 
Assets:           
Operating lease assets  Right-of-use assets  $1,802,006   $1,879,729 
              
Liabilities:             
Operating lease liabilities  Operating lease liabilities   163,193    183,981 
Operating lease liabilities  Operating lease liabilities, non-current   1,901,083    1,943,487 
Total lease liabilities     $2,064,276   $2,127,468 

The future minimum lease payments required under leases as of March 31, 2025, were as follows:

 

Fiscal Year  Operating
Leases		 
Remainder of 2025  $231,427 
2026   312,299 
2027   316,369 
2028   323,311 
2029   336,045 
Thereafter   1,332,103 
Undiscounted cash flows   2,851,554 
Less: imputed interest   (787,278)
Lease liability  $2,064,276 
14. Leases

 

Accounting for Leases as Lessee

 

The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets (“ROU”), operating lease liabilities, and operating lease liabilities, non-current. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. None of the leases entered into have an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any prepaid lease payments made and initial direct costs incurred and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease, which is recognized when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

 

The Company has operating leases for real estate. The Company has certain intercompany leases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below.

 

The components of lease expense included on the Company’s consolidated statements of operations were as follows:

 

   Expense Classification  For the Year Ended December 31, 
Operating lease expense:     2024   2023 
Amortization of ROU asset  General and administrative  $215,231   $132,138 
Accretion of Operating lease liability  General and administrative   45,613    25,667 
Total operating lease expense     $260,844   $157,805 
              
Other lease expense  General and administrative   61,408    28,012 
Total     $322,252   $185,817 

 

Other information related to leases is as follows:

 

   As of December 31, 
   2024   2023 
Remaining lease term:        
Operating leases (in years)   8.77    9.29 
Discount rate:          
Operating leases   7.25%   7.03%

 

Amounts relating to leases were presented on the consolidated balance sheets as of December 31, 2024 and 2023 in the following line items:

 

   Balance Sheet Classification  Year Ended December 31, 
Assets:     2024   2023 
Operating lease assets  Right-of-use assets  $1,879,729   $1,616,198 
              
Liabilities:             
Operating lease liabilities  Operating lease liabilities   183,981    141,691 
Operating lease liabilities  Operating lease liabilities, non-current   1,943,487    1,514,044 
Total lease liabilities     $2,127,468   $1,655,735 

The future minimum lease payments required under leases as of December 31, 2024, were as follows:

 

Fiscal Year  Operating
Leases		 
2025  $333,200 
2026   312,299 
2027   316,369 
2028   323,311 
2029   336,045 
Thereafter   1,332,102 
Undiscounted cash flows   2,953,326 
Less: imputed interest   (825,858)
Lease liability  $2,127,468