Note 12. Leases

During the six months ended June 30, 2026, the Company modified a certain operating lease related to its Orlando pharmacy location. The modification primarily extended the lease term for 60 months, expiring January 2031, and revised the monthly lease payments to approximately $8.9 thousand beginning in February 2026, with an escalating payment schedule each year thereafter. The modification was not accounted for as a separate contract and resulted in the remeasurement of the related operating lease liability using an incremental borrowing rate of 4.75%.

At the time of modification, the Company recorded an increase of approximately $0.5 million and $0.5 million to operating lease right-of-use assets and operating lease liabilities, respectively. The modification materially changed the Company’s future lease payment obligations, and the lease maturity schedule below has been updated as of June 30, 2026. The weighted average remaining lease term as of June 30, 2026 was 3.81 years and the weighted average discount rate was 5%.