Note 10 – Leases

The Company has various operating lease agreements in place for its office and clinics. Per FASB’s ASU 2016-02, Leases Topic 842 (“ASU 2016-02”), effective January 1, 2019, the Company is required to report a right-of-use asset and corresponding liability to report the present value of the total lease payments, with appropriate interest calculation. The Company utilizes the incremental borrowing rate for each lease by developing a synthetic credit rating for the Company as of the commencement date of each lease, adjusting the synthetic credit rating to reflect the collateralized nature of the incremental borrowing rate, the Company’s borrowing rate under other debt facilities, and the market spread between secured and unsecured borrowings, and based on the adjusted synthetic rating and the various terms of the leases, selected the incremental borrowing rate based on the commencement date, duration of the lease, and a corresponding weight-adjusted corporate yield curve. Lease renewal options included in any lease are considered in the lease term if it is reasonably certain the Company will exercise the option to renew. The Company’s operating lease agreements do not contain any material restrictive covenants.

As of June 30, 2026, the Company’s lease components included in the consolidated balance sheet were as follows:

 Schedule of Lease Components

Future minimum lease payments as of June 30, 2026 were as follows:

 Schedule of Future Minimum Lease Payments

For the six months ended June 30, 2026 and 2025, the weighted average remaining lease term for operating leases was 194 months and 91 months, respectively. For the six months ended June 30, 2026 and 2025, the weighted average discount rate for operating leases was 12.1 % and 12.2%, respectively. The Company paid approximately $0.2 million and $0.1 million in cash for operating lease amounts included in the measurement of lease liabilities for the six months ended June 30, 2026 and 2025, respectively. The Company did not have any finance leases as of June 30, 2026.

The Company added two leases during the fiscal year 2026 related to its acquisitions of HRCFG in Alabama (the “Alabama Lease”) and Family Beginnings in Indiana (the “Indiana Lease”). The remaining term for the Alabama Lease is 23 months with the option for two three-year extensions at fair market value and the Company recognized $247,375 in right of use assets and lease liabilities associated with it. The term for the Indiana Lease is 88 months with the option for two 5five-year extensions at fair market value and the Company recognized $747,467 in right of use assets and lease liabilities associated with it.