Quarterly report [Sections 13 or 15(d)]

Commitments and Contingencies

v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
The table below summarizes the components of lease expense and income statement location for the three and six months ended June 30, 2025 and 2024:
Line Items in the Company's Condensed Consolidated Income Statements Three Months Ended
June 30,		 Six Months Ended
June 30,
2025 2024 2025 2024
Operating lease costs:
Operating lease costs General and administrative expenses $ 91,577  $ 64,289  $ 172,758  $ 128,577 
Total lease costs $ 91,577  $ 64,289  $ 172,758  $ 128,577 
Supplemental information and balance sheet location related to leases (excluding amounts related to leases classified as discontinued operations) was as follows:
June 30, 2025 December 31, 2024
Operating Leases:
Operating lease right-of -use asset $ 1,686,945  $ 555,536 
Operating lease liability - current portion 189,142  483,337 
Operating lease liability - net of current portion 1,982,211  311,689 
Total operating lease liability $ 2,171,353  $ 795,026 
Weighted average remaining lease term (in years):
Operating leases 5.9 3.6
Weighted average discount rate:
Operating leases 6.5  % 6.5  %
Supplemental cash flow information related to leases (excluding amounts related to leases classified as discontinued operations) was as follows:
Six Months Ended
June 30, 2025		 Six Months Ended
June 30, 2024
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases $ 230,028  $ 224,405 
Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease $ 1,554,504  $ — 
Maturities of lease liabilities as of June 30, 2025 are as follows, excluding amounts related to leases classified as discontinued operations:
Operating Leases
2025 (remainder) $ 230,028 
2026 268,762 
2027 467,453 
2028 479,129 
2029 491,077 
Thereafter 715,279 
Total lease payments $ 2,651,728 
Less: Imputed interest (480,375)
Total lease obligations 2,171,353 
Less: Current obligations (189,142)
Long-term lease obligation $ 1,982,211 
Guarantee in Connection with the Sale of the Divested Business
In connection with the sale of company-owned or managed clinics, the Company has guaranteed 29 future operating lease commitments assumed by the buyers. The Company is obligated to perform under the guarantees if the buyers fail to perform under the lease agreements at any time during the remainder of the lease agreements, the latest of which expires on December 31, 2033. As of June 30, 2025, the undiscounted maximum remaining lease payments totaled $4.3 million. The Company has not recorded a liability with respect to the guarantee obligations as of June 30, 2025, as the Company concluded that payment under the lease guarantees was not probable.
Litigation
In the normal course of business, the Company is party to litigation and claims from time to time. The Company maintains insurance to cover certain litigation and claims.
During the second quarter of 2024, the Company entered into settlement agreements from litigation related to employment matters of $1.5 million that was outside the normal course of business, which the Company has accrued for in discontinued operations current liabilities as of December 31, 2024 and June 30, 2025.
Additionally, during the first quarter of 2025, litigation related to a medical injury claim between a patient ("the Claimant") and the Company filed on September 5, 2023 reached a settlement agreement on February 25, 2025. Per the terms of the settlement agreement, the Company and the Company's insurance were to pay the Claimant $3.4 million. The Company accrued the settlement recorded in discontinued operations current liabilities for $3.4 million as of December 31, 2024. The expense of the accrual was offset by a receivable recorded as discontinued operations current assets from the Company's insurance for $1.9 million as of December 31, 2024. The settlement was paid in full during the first quarter of 2025.