OPERATING LEASES — AS A LESSEE

12 Months Ended

Dec. 31, 2024

Operating Leases As Lessee

OPERATING LEASES — AS A LESSEE

NOTE 14 — OPERATING LEASES — AS A LESSEE

The Company has entered into operating leases for offices and sublease purposes, with terms ranging from two to seven 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 consolidated financials.

During the years ended December 31, 2024 and 2023, 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. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets.

The components of lease costs are as follows:

	For the Years Ended December 31,
	2024		2023
Operating lease costs	$	3,877,048	$	4,056,387
Short-term lease costs		286,009		757,457
Total lease costs	$	4,163,057	$	4,813,844

SBC MEDICAL GROUP HOLDINGS INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 — OPERATING LEASES — AS A LESSEE (cont.)

The following table presents supplemental information related to the Company’s operating leases:

	For the Years Ended December 31,
	2024			2023
Operating cash flows from operating leases	$	4,105,434		$	4,005,952
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	—		$	2,305,199
Remeasurement of operating lease liabilities and right-of use assets due to lease modifications	$	2,908,554		$	2,110,079
Weighted average remaining lease term (years)		1.66			2.30
Weighted average discount rate (per annum)		0.65	%		0.19	%

As of December 31, 2024, the future maturity of lease liabilities is as follows:

Years ending December 31,	Lease Payment
2025	$	4,361,879
2026		712,869
2027		263,412
2028		109,906
2029		109,906
Thereafter		54,950
Total undiscounted lease payments		5,612,922
Less: imputed interest		(29,874	)
Total operating lease liabilities	$	5,583,048