NOTE 4— LEASES

Operating Leases

As a result of the adoption of ASC 842 on January 1, 2021, the Company recognized a lease liability which represents the present value of the remaining operating lease payments discounted using our incremental borrowing rate of 5.0%, and a right-of-use asset.

Operating leases consist of an office and clinic locations and have remaining terms of approximately 7 and 1 years, respectively, and include options to extend the leases for additional periods. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods. If the estimate of our reasonably certain lease term was changed, our depreciation and rent expense could differ materially. The Company successfully negotiated a termination of the leases. Effective June 30, 2026, has no lease liability related to the office and clinic locations.

On August 1, 2024, the Company entered into a lease of a clinic facility sixty-six-month 66 triple-net lease agreement, to expire in 2029. The Company has one option to renew the lease for a five-year 5 period on the same terms and conditions with fair market value rent increases. The Company successfully negotiated a termination of the lease. Effective June 30, 2026, no lease liability exists.

On September 1, 2024, the Company entered into a lease of a clinic facility six-year 6 triple-net lease agreement, to expire in 2030. The Company has one option to renew the lease for a five-year 5 period on the same terms and conditions with annual rent increases. The Company successfully negotiated a termination of the lease. Effective June 30, 2026, no lease liability exists.

SCHEDULE OF TERMINATION OF THE LEASE

Sale/Leaseback

On March 31, 2016, the Company entered into a lease of Marina Towers under a sale/leaseback transaction, via a 10-year absolute triple-net master lease agreement, to expire in 2026. The Company has two successive options to renew the lease for five-year periods on the same terms and conditions and did not have any residual interest or the option to repurchase the facility at the end of the lease term.

During October 2021, the Company, through the eighteenth judicial circuit court in Brevard County, Florda, received an order approving joint stipulation for alternative resolution to the Company’s real estate lease in Melbourne, Florida. The order terminated the Company’s use of floors three and four of the building immediately, while terminating its right to possession and use of floors three and five at December 31, 2021. The order also terminated the existing lease payment schedule, replacing it with the following:

 SCHEDULE OF RENT INSTALLMENT PAYMENTS

Upon receipt of the Order, the Company recorded a liability and lease settlement expense for the amount of the order, or $1,443,498. As of December 31, 2023, the Company had paid $243,498 of this obligation and continues to carry a remaining open accounts payable liability of approximately $1,200,000. The Company is working to reach a settlement with the landlord.

Finance Leases

The Company adopted ASC 842 on January 1, 2021.

On May 31, 2018, the Company entered into a lease agreement for the use of equipment with 60 monthly payments of $2,112 payable through April 2023 with an effective interest rate of 5.00% per annum. The Company failed to make all payments as required under the lease agreement which resulted in the lender filing a complaint in the County Court of Brevard County, Florida (“Court”). In June 2023 the Court issued an order to the Company to return the equipment. The Company has accrued $19,473 to cover final payment and subsequently has reached an agreement to settle this debt for $9,000.