v3.26.1
Note 6 - Leases
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

Note 6. Leases

 

The Company has operating leases for three healthcare clinics in Naples, Fort Myers, and West Palm Beach, Florida and operating leases for certain medical equipment:

 

 

Naples Lease (Related Party): The Company leases its Naples clinic from Dura Properties, LLC, an entity owned and controlled by Dura’s former sole member prior to the acquisition. Following the acquisition on September 8, 2025, the former member became a director and minority shareholder of the Company. Right-of-use (ROU) assets and operating lease liabilities was measured under ASC 805 as if the leases were new at the acquisition date. The amended lease commenced on September 8, 2025 and expires on December 31, 2027. It is non-cancelable and requires monthly base rent of $6,000 (subject to 3% annual escalations), plus $2,000 in common area maintenance charges, and $1 thousand in taxes.

 

 

Fort Myers Lease (Third Party): The Company amended a lease for its Fort Myers clinic on September 8, 2025, with a commencement date of September 8, 2025, and an expiration date of November 30, 2026. Right-of-use (ROU) assets and operating lease liabilities were measured under ASC 805 as if the leases were new at the acquisition date. The amended lease is non-cancellable and requires monthly base rent of $5,000 in the first year, plus $2,000 in common area maintenance charges, subject to 3% annual escalations

 

 

West Palm Beach Lease (Third Party): On November 14, 2025, the Company entered into a sublease agreement with Third Party of office space located at West Palm Beach, Florida. The sublease commenced on December 1, 2025 and expires on April 5, 2028. The sublease provides for fixed annual rent of approximately $151,000 in the first lease year, subject to contractual escalations, and includes a five‑month rent abatement at commencement. The Company is also responsible for its proportionate share of operating expenses and other additional rent in accordance with the sublease terms.

 

 

Medical Equipment Leases (Third Party): On January 7, 2026, the Company entered into three commercial rental agreements with Third Party for certain medical equipment and related accessories. The agreement commenced on January 7, 2026 and has a base rental term of 48 months. The agreements provide for fixed monthly rental payments at an aggregate of $10,000.

 

The components of lease expense included in the Company’s statement of operations were as follows (in thousands):

 

   

For the three

  

For the six

 
   

months

  

months

 
   

ended

  

ended

 
   

June 30,

  

June 30,

 
 

Expense Classification

 

2026

  

2026

 

Operating lease expense:

         

Amortization of ROU asset

Selling, general and administrative

 $77  $153 

Accretion of operating lease liability

Selling, general and administrative

  15   31 

Amortization of ROU asset - related party

Selling, general and administrative

  26   51 

Accretion of operating lease liability - related party

Selling, general and administrative

  2   3 

Total operating lease expense

 $120  $238 

 

Other information related to leases is as follows:

 

  

As of

June 30,

  

As of

December 31,

 
  

2026

  

2025

 

Weighted-average remaining lease term:

        

Operating leases (in years)

  2.39   2.03 

Weighted-average discount rate:

        

Operating leases

  8.27%  7.62%

 

The future minimum lease payments required under leases as of June 30, 2026 were as follows (in thousands):

 

Fiscal Year

    

Remainder of 2026

 $234 

2027

  396 

2028

  172 

2029

  120 

Total

  922 

Less: imputed interest

  (88)

Lease liability

 $834