LEASES

6 Months Ended

9 Months Ended

12 Months Ended

Jun. 30, 2024

Sep. 30, 2023

Dec. 31, 2023

LEASES

NOTE 14. LEASES

The Company has various lease agreements with terms up to 20 years. All the leases are classified as operating leases.

Maturity of lease liabilities under our non-cancellable operating leases as of June 30, 2024 were as follows:

Payments due by period
2024 (remaining six months)	$	1,554,117
2025		2,854,958
2026		2,520,001
2027		1,535,080
2028		834,710
Thereafter		1,363,363
Total undiscounted operating lease payments	$	10,662,229
Less: Imputed interest		(817,366	)
Present value of operating lease liabilities	$	9,844,863

The following table summarizes the Company’s operating leases:

Balance Sheet Classification	June 30, 2024		December 31, 2023
Right of use asset	$	9,974,601	$	11,412,562
Operating lease liability, current	$	2,665,438	$	2,748,824
Operating lease liability, net of current	$	7,179,425	$	8,461,182

The amortization of the right-of-use asset of approximately $722,000 and $368,000 for the three months ended June 30, 2024 and 2023, and $1,438,000 and $1,063,000 for six months ended June 30, 2024 and 2023, respectively, were included in operating cash flows.

The following table provides a summary of other information related to the leases for the six months ended June 30, 2024 and December 31, 2023:

Other Information	June 30, 2024			December 31, 2023
Weighted-average remaining lease term for operating leases		5 years			5 years
Weighted-average discount rate for operating leases		3.97	%		3.98	%

Rent expense for the three months ended June 30, 2024 and 2023 was approximately $940,000 and $843,000, and approximately $1,864,000 and $1,668,000 for the six months ended June 30, 2024 and 2023, respectively. It is included in selling, general and administrative expenses in the accompanying condensed consolidated carve-out statements of operations.

The components of lease expenses for the three and six months ended June 30, 2024 and 2023 were as follows:

	Three Months Ended June 30,
	2024		2023
Operating lease cost	$	643,036	$	460,626
Variable lease cost		218,165		224,262
Short-term lease cost		79,291		158,433
Total rent expense	$	940,492	$	843,321

	Six Months Ended June 30,
	2024		2023
Operating lease cost	$	1,280,138	$	917,291
Variable lease cost		425,711		444,856
Short-term lease cost		157,823		315,374
Total rent expense	$	1,863,672	$	1,677,521

The aggregate cash payments under the leasing arrangement were approximately $1,365,000 and $1,002,000 for the six months ended June 30, 2024 and 2023, respectively, were included in operating cash flows.

NOTE 14. LEASES

The Company has various lease agreements with terms up to 20 years. All the leases are classified as operating leases.

Maturity of lease liabilities under our non-cancellable operating leases as of December 31, 2023 were as follows:

Payments due by period
2024	$	3,116,834
2025		2,859,278
2026		2,520,001
2027		1,535,080
2028		834,710
Thereafter		1,363,363
Total undiscounted operating lease payments	$	12,229,266
Less: Imputed interest		(1,019,260	)
Present value of operating lease liabilities	$	11,210,006

The following table summarizes the Company’s operating leases:

Balance Sheet Classification	December 31, 2023		December 31, 2022
Right of use asset	$	11,412,562	$	10,604,935
Operating lease liability, current	$	2,748,824	$	2,228,852
Operating lease liability, net of current	$	8,461,182	$	8,041,504

The amortization of the right-of-use asset of approximately $2,570,000 and $1,043,000 for the years ended December 31, 2023 and 2022, respectively, were included in operating cash flows.

The following table provides a summary of other information related to the leases for the years ended December 31, 2023 and 2022:

Other Information	December 30, 2023			December 31, 2022
Weighted-average remaining lease term for operating leases		5 years			6 years
Weighted-average discount rate for operating leases		3.98	%		3.83	%

Rent expense for the years ended December 31, 2023 and 2022 was approximately $3,400,000 and $1,400,000, respectively. It is included in selling, general and administrative expenses in the accompanying consolidated carve-out statements of operations.

The components of lease expenses for the years ended December 31, 2023 and 2022 were as follows:

	December 31, 2023		December 31, 2022
Operating lease cost	$	2,263,413	$	759,207
Variable lease cost		865,095		355,924
Short-term lease cost		306,790		284,013
Total rent expense	$	3,435,298	$	1,399,144

The aggregate cash payments under the leasing arrangement were approximately $2,438,000 and $953,000 for the years ended December 31, 2023 and 2022, respectively, were included in operating cash flows.

Greens Natural Foods, Inc. [Member]

LEASES

NOTE 5 – LEASES

The Company leased four retail locations in the State of New Jersey (NJ) and four in the State of New York (NY). All the leases are classified as operating leases.

Maturity of lease liabilities under our non-cancellable operating leases as of September 30, 2022 were as follows:

Payments due by period	September 30, 2022
2022 (remaining three months)	$	432,127
2023		1,774,056
2024		1,232,391
2025		982,606
2026		859,607
Thereafter		1,296,758
Total undiscounted operating lease payments	$	6,577,545
Less: Imputed interest		(541,441	)
Present value of operating lease liabilities	$	6,036,104

The following table summarizes the Company’s operating leases:

Balance Sheet Classification	September 30, 2022
Right of use asset	$	6,036,104
Operating lease liability, current	$	1,661,788
Operating lease liability, net of current	$	4,374,315

The following table provides a summary of other information related to the leases at September 30, 2022:

Other Information	September 30, 2022
Weighted-average remaining lease term for operating leases		5 years
Weighted-average discount rate for operating leases		1.30	%

Rent expenses for three and nine months ended September 30, 2022 were approximately $0.5 million and $1.5 million, respectively. It is included in operating expenses in the accompanying condensed combined statement of operations.

The components of lease expenses for the three and nine months ended September 30, 2022:

	Three Month Ended September 30, 2022		Nine Month Ended September 30, 2022
Operating lease cost	$	322,629	$	964,753
Variable lease cost		77,633		267,301
Short-term lease cost		89,455		267,496
Total rent expense	$	489,717	$	1,499,550

The aggregate cash payments under the leasing arrangement were approximately $1.1 million for the nine months ended September 30, 2022, and was included in operating cash flows.