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LEASES
 3 Months Ended
Mar. 31, 2026
Leases  
LEASES

NOTE 13 – LEASES

 

On October 15, 2025, the Company entered into a non-cancelable retail facility lease with RWBP Highland, L.P. for approximately 3,815 rentable square feet of space located at 1724 N Highland Avenue, Suite 270, Los Angeles, California 90028. The lease is for the operation of a first-class studio fitness, private fitness training facility, company promotional events and company content creation. The lease term is five years, commencing on the rent commencement date of February 1, 2026, and expiring on January 31, 2031. The lease also includes one five-year renewal option; however, the renewal option has not been included in the lease term as the Company has not concluded that exercise of the option is reasonably certain.

 

 

The lease requires monthly base rent ranging from approximately $14,306 to $16,214 during the initial lease term, plus fixed additional rent for common area costs, taxes and insurance starting at $1.00 per rentable square foot per month, subject to annual escalation. The Company classified the lease as an operating lease under ASC 842 and recognized a right-of-use asset and lease liability using an incremental borrowing rate of 8.00%.

 

For the Three Months Ended March 31,  2026   2025 
         
Operating lease expense  $39,203    - 
Total lease expense   39,203    - 
           
In accordance with ASC 842, other information related to leases was as follows:          
           
For the Three Months Ended March 31,          
Operating cash flows from operating leases  $36,243    - 
Cash paid for amounts included in the measurement of lease liabilities   36,243    - 
           
Maturities of operating lease liabilities as of March 31, 2026 were as follows:          
           
2026 (remaining nine months)  $163,091    - 
2027   230,464    - 
2028   232,906    - 
2029   245,190    - 
2030   247,555    - 
Thereafter   20,639    - 
Total undiscounted cash flows  $1,139,846    - 
Less: Imputed Interest   195,317    - 
Present value of lease liabilities   944,529    - 
           
Reconciliation of lease liabilities:          
Weighted-average remaining lease terms   4.83 Years    - 
Weighted-average discount rate   8.00%   - 
Lease liabilities—current  $151,106    - 
Lease liabilities—long-term   793,423    - 
Lease liabilities—total   944,529    - 
           
Operating lease right-of-use asset, net  $941,569    -