| LEASES - AS A LESSEE |
NOTE 14 — LEASES — AS A LESSEE The Company has entered into operating leases for offices and sublease purposes, with terms ranging from two to seven years, and finance leases for certain medical equipment, with terms of four years. The estimated effect of lease renewal and termination options, as applicable, that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use assets and lease liabilities was included in the unaudited consolidated financial statements. During the nine months ended September 30, 2025 and 2024, certain operating leases were guaranteed by related parties of the Company. Operating lease expenses for lease payments are recognized on a straight-line basis over the lease term. Finance lease costs include amortization, which is recognized on a straight-line basis over the expected life of the leased assets, and interest expenses, which are recognized following an effective interest rate method. Leases with an initial term of twelve months or less are not recorded in the unaudited consolidated balance sheets. The components of lease costs are as follows:
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For the Three Months
Ended September 30, |
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For the Nine Months
Ended September 30, |
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2025 |
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|
2024 |
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|
2025 |
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|
2024 |
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Finance lease costs: |
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Amortization of finance lease right-of-use assets |
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$ |
31,457 |
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$ |
— |
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|
$ |
72,377 |
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|
$ |
— |
|
Interest on finance lease liabilities |
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|
3,784 |
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|
— |
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|
9,007 |
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|
— |
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Total finance lease costs |
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|
35,241 |
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|
|
— |
|
|
|
81,384 |
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|
|
— |
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Operating lease costs |
|
|
1,259,336 |
|
|
|
986,723 |
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|
|
3,456,842 |
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|
|
2,914,366 |
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Short-term lease costs |
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|
32,451 |
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|
|
59,620 |
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|
|
187,779 |
|
|
|
239,673 |
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Total lease costs |
|
$ |
1,327,028 |
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|
$ |
1,046,343 |
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|
$ |
3,726,005 |
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|
$ |
3,154,039 |
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The following table presents supplemental information related to the Company’s leases:
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For the Nine Months
Ended September 30, |
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2025 |
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|
2024 |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows from operating leases |
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$ |
3,639,887 |
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|
$ |
3,107,447 |
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Operating cash flows from finance leases |
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|
9,007 |
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|
|
— |
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Financing cash flows from finance leases |
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|
310,603 |
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|
|
— |
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Non-cash information: |
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Operating lease right-of-use assets obtained in exchange for operating lease liabilities |
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|
105,556 |
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|
— |
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Finance lease right-of-use assets obtained in exchange for finance lease liabilities |
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|
612,466 |
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|
— |
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Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications |
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|
2,646,028 |
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|
2,408,752 |
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Weighted average remaining lease term (years) |
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Operating leases |
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1.81 |
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|
2.05 |
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Finance leases |
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|
2.43 |
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|
|
— |
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Weighted average discount rate (per annum) |
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Operating leases |
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0.68 |
% |
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|
0.19 |
% |
Finance leases |
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|
5.11 |
% |
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— |
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NOTE 14 — LEASES — AS A LESSEE (cont.) As of September 30, 2025, the future maturity of operating and finance lease liabilities is as follows:
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Years ending December 31, |
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Operating
Leases |
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Finance
Leases |
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Remaining of 2025 |
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$ |
1,177,273 |
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$ |
41,361 |
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2026 |
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|
2,661,733 |
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|
132,469 |
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2027 |
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|
893,682 |
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|
76,237 |
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2028 |
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|
235,745 |
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|
43,213 |
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2029 |
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|
128,596 |
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|
|
7,004 |
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Thereafter |
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|
58,186 |
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|
— |
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Total undiscounted lease payments |
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|
5,155,215 |
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|
|
300,284 |
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Less: imputed interest |
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|
(45,178 |
) |
|
|
(16,004 |
) |
Present value of lease liabilities |
|
|
5,110,037 |
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|
|
284,280 |
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Less: lease liabilities, current |
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|
(3,545,667 |
) |
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|
(147,603 |
) |
Lease liabilities, non-current |
|
$ |
1,564,370 |
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|
$ |
136,677 |
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