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HEALTHY CHOICE WELLNESS CORP. DE 5411 88-4128927 3800 North 28th Way Hollywood FL 33020 (305) 600-5004 Jeffrey Holman 3800 North 28th Way Hollywood FL 33020 (305) 600-5004 Non-accelerated Filer true true true This registration statement is a post-effective amendment to the registration statement on Form S-3 (File No. 333-275209) of Healthy Choice Wellness Corp. (the “Registrant”) filed initially with the Securities and Exchange Commission (the “SEC”) on October 27, 2023 (the “Registration Statement”), as originally declared effective on September 12, 2024. This post-effective amendment to the Registration Statement is being filed for the purpose of (i) revising a risk factor on page 20, (ii) revising the distribution date of the spin-off dividend of the Registrant to September 13, 2024 and (ii) filing Exhibit 8.1. This post-effective amendment shall become effective immediately upon filing with the Securities and Exchange Commission. A prospectus to be used by the Registrant in connection with offerings of its shares of common stock was included in this Registration Statement.

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NOTE 1. ORGANIZATION Organization Healthy Choice Wellness Corp. (the “Company” or “HCWC”) is a Delaware corporation organized in September 2022. It is a wholly owned operating segment of Healthier Choices Management Corp (“HCMC”), a U.S. based holding company, which trades on the OTC Pink Sheets, specializing in providing consumers with healthier alternatives to everyday lifestyle choices. Through its wholly owned subsidiaries, Healthy Choice Markets, Inc., Healthy Choice Markets 2, LLC, Healthy Choice Markets 3, LLC, Healthy Choice Markets IV, LLC, and Healthy Choice Markets V, LLC respectively, the Company operates: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products, and natural household items.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products, and natural household items.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Mother Earth’s Storehouse, an organic and health food and vitamin chain in New York’s Hudson Valley, has been in existence for over 40 years.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries & bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia.</td></tr></table> Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company operates a Healthy Choice Wellness Center in Kingston, NY and has a licensing agreement for a Healthy Choice Wellness Center located at the Casbah Spa and Salon in Fort Lauderdale, FL. These centers offer multiple vitamin drip mixes and intramuscular shots for clients to choose from that are designed to help boost immunity, fight fatigue and stress, reduce inflammation, enhance weight loss, and efficiently deliver antioxidants and anti-aging mixes. Additionally, there are IV vitamin mixes and shots for health, beauty, and re-hydration. Through its wholly owned subsidiary, Healthy U Wholesale, Inc., the Company sells vitamins and supplements, as well as health, beauty and personal care products through its on-line retail subsidiary, The Vitamin Store, LLC. Sourcing and Vendors We source from multiple suppliers. These suppliers range from small independent businesses to multinational conglomerates. For the three months ended June 30, 2024 and 2023, approximately <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20240630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneVendorMember_z08N1pIeqkx3" title="Concentration risk percentage">36% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230401__20230630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneVendorMember_ztCV2sotNATl" title="Concentration risk percentage">41% of our total purchases were from one vendor. For the six months ended June 30, 2024 and 2023, approximately <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20240630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneVendorMember_zEt6ZQo5guIg" title="Concentration risk percentage">36% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20230630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneVendorMember_zhysoz9NNDc9" title="Concentration risk percentage">42% of our total purchases were from one vendor. Spin-Off The Company intends to spin off its grocery segment and wellness business into a new publicly traded company (hereinafter referred to as “NewCo”). NewCo will continue the path of growth in the health verticals started by HCMC and explore other growth opportunities that comport with HCMC’s healthier lifestyle mission. HCMC will retain its entire patent suite, the Q-Cup® brand, and continue to develop its patent suite through R&D as well as continuing its path of enforcing its patent rights against infringers and attempting to monetize said patents through licensing deals. At the time of the Spin-Off, HCMC would distribute all the outstanding shares of Common Stock held by it on a pro rata basis to holders of HCMC’s common stock. Each share of HCMC’s common stock outstanding as of the record date for the Spin-Off, will entitle the holder thereof to receive shares of Common Stock in NewCo. The distribution will be made in book-entry form by a distribution agent. Fractional shares of Common Stock will not be distributed in the Spin-Off and any fractional amounts will be rounded down. Please see additional disclosure in Note 12 Stockholder Equity.

0.36

0.41

0.36

0.42

NOTE 2. GOING CONCERN The accompanying condensed consolidated carve-out financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern and realization of assets and satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the outcome of any uncertainties related to our going concern assessment. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. As of June 30, 2024, the Company had approximately $1.0 million in cash and a working capital deficit of approximately $3.8 million. For the six months ended June 30, 2024, the Company incurred net losses of approximately $1.3 million and cash used in operating activities of approximately $3.0 million. The Company’s liquidity needs through June 30, 2024 have been satisfied through additional investments from HCMC, our parent company (see Note 15 Related Party Transactions). On May 16, 2024, the Company secured a financing commitment with a private lender. This commitment allows the Company to draw up to $5 million from its revolving credit facility to be used for expansion and working capital purposes. The loan will be repayable in full on August 31, 2025 and the interest rate on the loan is <span id="xdx_90A_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_dp_uPure_c20240101__20240630__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember_zvyPlMt8sam6" title="Interest rate percentage">12%. On August 17, 2024, the Company and the private lender amended the financing commitment to extend the maturity date to February 28, 2026. On July 18, 2024, HCWC entered into a $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_pn5n6_c20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_zc9wBxENnFXl" title="Face amount">7.5 million loan and security agreement with a private lender to support its expansion plans and funding of any working capital needs, of which $<span id="xdx_90D_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_pn5n6_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_z0cXQK8veh0b" title="Purchase of green acres market">4.2 million was used for the July 18, 2024 purchase of GreenAcres Market. The face amount of the loan is $<span id="xdx_90D_eus-gaap--DebtInstrumentFaceAmount_iI_c20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_zplGWJ28dB9" title="Face amount">7,500,000 with <span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_zqA0BMCygZRb" title="Annual interest percentage">12% annual interest and has a maturity date of <span id="xdx_90A_eus-gaap--DebtInstrumentMaturityDate_pid_ddp_uPure_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember_zqaFpLLg3Rtl" title="Debt instrument, maturity date">July 17, 2027. On July 24, 2024, the Company finalized the closing of Saugerties building sale with all parties involved and received net proceeds of $695,000. After the spin-off, the Company will need to develop new sources of financing to fund future operations and capital expansion. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. The Company believes its cash on hand and its ability to draw on its $5 million line of credit will enable the Company to meet its obligations and capital requirements for at least the twelve months from the date these financial statements are issued. Accordingly, no adjustment has been made to the financial statements to account for this uncertainty.

1000000.0

-3800000

-1300000

-3000000.0

5000000

0.12

7500000

4200000

7500000

0.12

2027-07-17

695000

5000000

NOTE 3. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated carve-out financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company has historically operated as part of HCMC and not as a standalone company. Financial statements representing the historical operations of HCMC’s grocery segment have been derived from HCMC’s historical accounting records and are presented on a carve-out basis. HCMC has commenced steps to spin off its grocery segment and wellness business into HCWC. The entities under the grocery segment and wellness business were contributed (100%) to HCWC, as such the accompanying condensed consolidated carve-out financial statements have been contributed to HCWC using their carryover basis in accordance with Accounting Standard Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”) for entities under common control. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the condensed consolidated carve-out financial statements. The condensed consolidated carve-out financial statements also include allocations of certain general, administrative, sales and marketing expenses from HCMC. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company operated independently of HCMC. Related-party allocations are discussed further in Note 15. Unaudited Interim Condensed Consolidated Carve-Out Financial Statements The interim condensed consolidated carve-out balance sheet as of June 30, 2024, the interim condensed consolidated carve-out statements of operations and the interim condensed consolidated carve-out statements of changes in net parent’s investment for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023 are unaudited. The financial data and the other financial information disclosed in the notes to these condensed consolidated carve-out financial statements relating to the three-month and six-month periods are also unaudited, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. These condensed consolidated carve-out financial statements should be read in conjunction with the consolidated carve-out financial statements in Amendment 4 to Form S-1 for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on May 24, 2024. The condensed consolidated carve-out balance sheet as of December 31, 2023 was derived from the Company’s audited 2023 financial statements contained in the above referenced S-1. Results of the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the full year ending December 31, 2024 or any other period. Principles of Consolidation The condensed consolidated carve-out financial statements include the accounts of the Company and its wholly-owned subsidiaries, Healthy Choice Markets, Inc. (“Ada’s Natural Market”), Healthy Choice Markets 2, LLC (“Paradise Health and Nutrition”), Healthy Choice Markets 3, LLC (“Mother Earth’s Storehouse”), Healthy Choices Markets 3 Real Estate LLC, Healthy Choice Markets IV, LLC (Green’s Natural Foods), Healthy Choice Markets V, LLC (Ellwood Thompson’s), Healthy Choice Wellness, LLC, Healthy Choice Wellness II, LLC,, and Healthy U Wholesale, Inc (“The Vitamin Store, LLC”). All intercompany accounts and transactions have been eliminated in consolidation. Net Parent Investment The accompanying condensed consolidated carve-out financial statements were derived from the consolidated financial statements of HCMC on a carve-out basis, and the financial statements also include allocations of certain general, administrative, legal, and marketing expenses from HCMC. The primary components of the net parent’s investment are intercompany balances other than related party payables, the allocation of shared costs, and funding received to cover any shortfall in operating cash requirements. Balances between HCMC and the Company that were not historically cash settled are included in net parent investment. Net parent’s investment represents the cumulative investment by HCMC in the Company through the dates presented. Use of Estimates in the Preparation of the Financial Statements The preparation of condensed consolidated carve-out financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated carve-out financial statements, and the reported amounts of net revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include useful lives and impairment of long-lived assets, deferred taxes and related valuation allowances, allocation of corporate general expenses, and the valuation of the assets and liabilities acquired in business combinations. Certain of management’s estimates could be affected by external conditions, including those unique to our industry, and general economic conditions. It is possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and records adjustments when necessary. Revenue Recognition Revenues from product sales and services rendered, net of promotional discounts, manufacturer coupons and rebates, return allowances, and sales and consumption taxes, are recorded when products are delivered, title passes to customers and collection is likely to occur. Title passes to customers at the point of sale for retail and upon delivery of products for wholesale. Return allowances, which reduce revenue, are estimated using historical experience. The Company recognizes revenue in accordance with the following five-step model: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.35in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">identify arrangements with customers.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">identify performance obligations.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">determine transaction price.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">allocate transaction price to the separate performance obligations in the arrangement, if more than one exists; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">recognize revenue as performance obligations are satisfied.</td></tr></table> Shipping and Handling Shipping charges billed to customers are included in net sales and the related shipping and handling costs are included in cost of sales. The Company incurred shipping and handling costs of approximately $34,000 and $28,000 for the three months ended June 30, 2024 and 2023, and $61,000 and 65,000 for the six months ended June 30, 2024 and 2023, respectively. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. The majority of the Company’s cash is concentrated in one financial institution, which is in excess of Federal Deposit Insurance Corporation (FDIC) coverage. The Company has not experienced any losses in such accounts. The Company did not have any cash equivalents as of June 30, 2024 and December 31, 2023. A summary of the financial institution that had cash in excess of FDIC limits of $250,000 as of June 30, 2024 and December 31, 2023 is presented below: SCHEDULE OF CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20240630_znnkVFT5oWTk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20231231_zdrhTy26zEf4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--CashFDICInsuredAmount_iI_z32849Gxsmd3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Total cash in excess of FDIC limits of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_903_ecustom--CashFDICAmount_iI_c20240630_zaRAW6S82If5" title="Cash, FDIC amount"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90F_ecustom--CashFDICAmount_iI_c20231231_zSpeSdeh0El4" title="Cash, FDIC amount">250,000</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">-</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">161,644</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivables are claims to consideration which are unconditional; meaning no performance obligations remain for the Company and only the passage of time is necessary before collection. Contract assets are distinguished from accounts receivable as performance obligations remain before claims to consideration become unconditional. By nature of the Company’s operations, contract assets are typically not recognized. Contract liabilities are recorded when customers transfer consideration in advance of delivery of products or services, which the Company records for gift cards and loyalty reward programs. When one party to an arrangement performs before the other(s), the Company records an account receivable, contract asset or contract liability. The majority of arrangements with customers contain one performance obligation: to provide a distinct set of products or services. Most performance obligations are satisfied simultaneously as the Company exchanges products or services for customer payment. Exceptions include gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products or services at a future date. As gift cards are purchased and loyalty points earned, contract liabilities are recorded until the performance obligations are satisfied through delivery of products or services or breakage based on gift card and loyalty reward program term limits. The Company’s breakage policy is twenty-four months for gift cards and twelve months for loyalty rewards. Loyalty rewards are earned at five percent on qualifying purchases and the reward functions as an allocation of transaction price from the period earned by the customer to the period the performance obligation is satisfied by the Company. As such, all contract liabilities are expected to be recognized within a twenty-four-month period. Other Current Assets Other current assets are the non-trade related assets that the Company owns, benefits from, or uses to generate income that can be converted into cash within one business cycle. Inventories Inventories are measured at the lower of cost and net realizable value using the average cost method. If the cost of the inventories exceeds their net realizable value, adjustments are recorded to write down excess carrying value to their net realizable value. The Company’s inventories consist primarily of merchandise available for resale, such as fresh produce, perishable grocery items and non-perishable consumable goods. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the respective asset, after the asset is placed in service. Revenue earning property, plant, and equipment includes signage, furniture and fixtures, building, computer hardware, appliance, cooler, and displays have useful lives ranging from two to seven years. Leasehold improvements are amortized over the shorter of the life of the improvement or the term of the lease. Identifiable Intangible Assets and Goodwill Identifiable intangible assets are recorded at cost, or when acquired as part of a business acquisition, at estimated fair value. Certain identifiable intangible assets are amortized over 4 to 10 years. Similar to tangible personal property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indefinite-lived intangible assets, such as goodwill are not amortized. Impairment of Long-Lived Assets The Company reviews all long-lived assets such as property and equipment and amortized intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future cash flows expected to be generated by the asset or asset group. Impairment is measured by the amount by which the carrying value of the asset(s) exceeds their fair value. There were no triggering events that would indicate impairment of long-lived assets on June 30, 2024. Goodwill The Company assesses the carrying amounts of goodwill for recoverability on at least an annual basis or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value-based test. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, and the useful life over which cash flows will occur. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for the Company. Our annual impairment test is conducted on September 30 of each year or more often if deemed necessary. The Company incurred a non-cash impairment charge of $6.1 million dollar for the year ended December 31, 2023. Advertising Advertising expense is classified as selling, general and administrative expense on the condensed consolidated carve-out statements of operations. The Company expenses advertising costs as incurred. The Company incurred advertising expenses of approximately $43,000 and $92,000 for the three months ended June 30, 2024 and 2023, and $201,000 and 151,000 for the six months ended June 30, 2024 and 2023, respectively. 401(k) retirement savings plan The Company’s employees are offered a 401(k)-retirement savings plan that is administered under HCMC with discretionary contribution matching opportunities. 401K employer expense amounted to $22,000 and $21,000 for the three months ended June 30, 2024 and 2023, and $43,000 and $38,000 for the six months ended June 30, 2024 and 2023, respectively. Income Taxes The Company’s income taxes are included in HCMC’s consolidated return. For the purposes of the condensed consolidated carve-out financial statements, the income taxes for the Company have been presented on a separate return basis, under which a new stand-alone set of deferred tax assets and liabilities is created based on the financial statement accounts of the carveout. The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2024 and December 31, 2023. The Company had no uncertain tax positions as of June 30, 2024 and December 31, 2023. Leases Operating lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company’s incremental borrowing rates. Related operating ROU assets are recognized based on the initial present value of the fixed lease payments, reduced by contributions from landlords, plus any prepaid rent and direct costs from executing the leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred. The Company did not have finance leases as of June 30, 2024 and 2023. If the Company enters into a finance lease in the future, it will be accounted for in accordance with ASC Topic 842. Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimated amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company uses the fair value framework under FASB’s guidance, and it requires the categorization of assets and liabilities into three levels based upon the assumptions used to measure the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, would generally require significant management judgment. The three levels for categorizing assets and liabilities under the fair value measurement requirements are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20.25pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 27pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1: Fair value measurement of the asset or liability using observable inputs such as quoted prices in active markets for identical assets or liabilities.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20.25pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 27pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2: Fair value measurement of the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20.25pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 27pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3: Fair value measurement of the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability.</td></tr></table> Business Combination The Company applies the provisions of ASC Topic 805, Business Combinations (“ASC 805”) in the accounting for acquisitions of businesses. ASC 805 requires the Company to use the acquisition method of accounting by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed and measured at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the aforementioned amounts. Acquisition-related expenses were expensed as incurred and recorded in selling, general and administrative expenses in the condensed consolidated carve-out statements of operations. Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements.

Basis of Presentation The accompanying condensed consolidated carve-out financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company has historically operated as part of HCMC and not as a standalone company. Financial statements representing the historical operations of HCMC’s grocery segment have been derived from HCMC’s historical accounting records and are presented on a carve-out basis. HCMC has commenced steps to spin off its grocery segment and wellness business into HCWC. The entities under the grocery segment and wellness business were contributed (100%) to HCWC, as such the accompanying condensed consolidated carve-out financial statements have been contributed to HCWC using their carryover basis in accordance with Accounting Standard Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”) for entities under common control. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the condensed consolidated carve-out financial statements. The condensed consolidated carve-out financial statements also include allocations of certain general, administrative, sales and marketing expenses from HCMC. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company operated independently of HCMC. Related-party allocations are discussed further in Note 15.

Unaudited Interim Condensed Consolidated Carve-Out Financial Statements The interim condensed consolidated carve-out balance sheet as of June 30, 2024, the interim condensed consolidated carve-out statements of operations and the interim condensed consolidated carve-out statements of changes in net parent’s investment for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023 are unaudited. The financial data and the other financial information disclosed in the notes to these condensed consolidated carve-out financial statements relating to the three-month and six-month periods are also unaudited, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. These condensed consolidated carve-out financial statements should be read in conjunction with the consolidated carve-out financial statements in Amendment 4 to Form S-1 for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on May 24, 2024. The condensed consolidated carve-out balance sheet as of December 31, 2023 was derived from the Company’s audited 2023 financial statements contained in the above referenced S-1. Results of the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the full year ending December 31, 2024 or any other period.

Principles of Consolidation The condensed consolidated carve-out financial statements include the accounts of the Company and its wholly-owned subsidiaries, Healthy Choice Markets, Inc. (“Ada’s Natural Market”), Healthy Choice Markets 2, LLC (“Paradise Health and Nutrition”), Healthy Choice Markets 3, LLC (“Mother Earth’s Storehouse”), Healthy Choices Markets 3 Real Estate LLC, Healthy Choice Markets IV, LLC (Green’s Natural Foods), Healthy Choice Markets V, LLC (Ellwood Thompson’s), Healthy Choice Wellness, LLC, Healthy Choice Wellness II, LLC,, and Healthy U Wholesale, Inc (“The Vitamin Store, LLC”). All intercompany accounts and transactions have been eliminated in consolidation.

Net Parent Investment The accompanying condensed consolidated carve-out financial statements were derived from the consolidated financial statements of HCMC on a carve-out basis, and the financial statements also include allocations of certain general, administrative, legal, and marketing expenses from HCMC. The primary components of the net parent’s investment are intercompany balances other than related party payables, the allocation of shared costs, and funding received to cover any shortfall in operating cash requirements. Balances between HCMC and the Company that were not historically cash settled are included in net parent investment. Net parent’s investment represents the cumulative investment by HCMC in the Company through the dates presented.

Use of Estimates in the Preparation of the Financial Statements The preparation of condensed consolidated carve-out financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated carve-out financial statements, and the reported amounts of net revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include useful lives and impairment of long-lived assets, deferred taxes and related valuation allowances, allocation of corporate general expenses, and the valuation of the assets and liabilities acquired in business combinations. Certain of management’s estimates could be affected by external conditions, including those unique to our industry, and general economic conditions. It is possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

Revenue Recognition Revenues from product sales and services rendered, net of promotional discounts, manufacturer coupons and rebates, return allowances, and sales and consumption taxes, are recorded when products are delivered, title passes to customers and collection is likely to occur. Title passes to customers at the point of sale for retail and upon delivery of products for wholesale. Return allowances, which reduce revenue, are estimated using historical experience. The Company recognizes revenue in accordance with the following five-step model: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.35in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">identify arrangements with customers.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">identify performance obligations.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">determine transaction price.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">allocate transaction price to the separate performance obligations in the arrangement, if more than one exists; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">recognize revenue as performance obligations are satisfied.</td></tr></table>

Shipping and Handling Shipping charges billed to customers are included in net sales and the related shipping and handling costs are included in cost of sales. The Company incurred shipping and handling costs of approximately $34,000 and $28,000 for the three months ended June 30, 2024 and 2023, and $61,000 and 65,000 for the six months ended June 30, 2024 and 2023, respectively.

34000

28000

61000

65000

Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. The majority of the Company’s cash is concentrated in one financial institution, which is in excess of Federal Deposit Insurance Corporation (FDIC) coverage. The Company has not experienced any losses in such accounts. The Company did not have any cash equivalents as of June 30, 2024 and December 31, 2023. A summary of the financial institution that had cash in excess of FDIC limits of $250,000 as of June 30, 2024 and December 31, 2023 is presented below: SCHEDULE OF CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20240630_znnkVFT5oWTk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20231231_zdrhTy26zEf4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--CashFDICInsuredAmount_iI_z32849Gxsmd3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Total cash in excess of FDIC limits of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_903_ecustom--CashFDICAmount_iI_c20240630_zaRAW6S82If5" title="Cash, FDIC amount"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90F_ecustom--CashFDICAmount_iI_c20231231_zSpeSdeh0El4" title="Cash, FDIC amount">250,000</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">-</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">161,644</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

250000 250000

SCHEDULE OF CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20240630_znnkVFT5oWTk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20231231_zdrhTy26zEf4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--CashFDICInsuredAmount_iI_z32849Gxsmd3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Total cash in excess of FDIC limits of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_903_ecustom--CashFDICAmount_iI_c20240630_zaRAW6S82If5" title="Cash, FDIC amount"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90F_ecustom--CashFDICAmount_iI_c20231231_zSpeSdeh0El4" title="Cash, FDIC amount">250,000</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">-</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">161,644</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

250000 250000

161644

Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivables are claims to consideration which are unconditional; meaning no performance obligations remain for the Company and only the passage of time is necessary before collection. Contract assets are distinguished from accounts receivable as performance obligations remain before claims to consideration become unconditional. By nature of the Company’s operations, contract assets are typically not recognized. Contract liabilities are recorded when customers transfer consideration in advance of delivery of products or services, which the Company records for gift cards and loyalty reward programs. When one party to an arrangement performs before the other(s), the Company records an account receivable, contract asset or contract liability. The majority of arrangements with customers contain one performance obligation: to provide a distinct set of products or services. Most performance obligations are satisfied simultaneously as the Company exchanges products or services for customer payment. Exceptions include gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products or services at a future date. As gift cards are purchased and loyalty points earned, contract liabilities are recorded until the performance obligations are satisfied through delivery of products or services or breakage based on gift card and loyalty reward program term limits. The Company’s breakage policy is twenty-four months for gift cards and twelve months for loyalty rewards. Loyalty rewards are earned at five percent on qualifying purchases and the reward functions as an allocation of transaction price from the period earned by the customer to the period the performance obligation is satisfied by the Company. As such, all contract liabilities are expected to be recognized within a twenty-four-month period. Other Current Assets Other current assets are the non-trade related assets that the Company owns, benefits from, or uses to generate income that can be converted into cash within one business cycle.

Inventories Inventories are measured at the lower of cost and net realizable value using the average cost method. If the cost of the inventories exceeds their net realizable value, adjustments are recorded to write down excess carrying value to their net realizable value. The Company’s inventories consist primarily of merchandise available for resale, such as fresh produce, perishable grocery items and non-perishable consumable goods.

Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the respective asset, after the asset is placed in service. Revenue earning property, plant, and equipment includes signage, furniture and fixtures, building, computer hardware, appliance, cooler, and displays have useful lives ranging from two to seven years. Leasehold improvements are amortized over the shorter of the life of the improvement or the term of the lease.

P7Y

Identifiable Intangible Assets and Goodwill Identifiable intangible assets are recorded at cost, or when acquired as part of a business acquisition, at estimated fair value. Certain identifiable intangible assets are amortized over 4 to 10 years. Similar to tangible personal property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indefinite-lived intangible assets, such as goodwill are not amortized.

P4Y

P10Y

Impairment of Long-Lived Assets The Company reviews all long-lived assets such as property and equipment and amortized intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future cash flows expected to be generated by the asset or asset group. Impairment is measured by the amount by which the carrying value of the asset(s) exceeds their fair value. There were no triggering events that would indicate impairment of long-lived assets on June 30, 2024.

Goodwill The Company assesses the carrying amounts of goodwill for recoverability on at least an annual basis or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value-based test. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, and the useful life over which cash flows will occur. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for the Company. Our annual impairment test is conducted on September 30 of each year or more often if deemed necessary. The Company incurred a non-cash impairment charge of $6.1 million dollar for the year ended December 31, 2023.

6100000

Advertising Advertising expense is classified as selling, general and administrative expense on the condensed consolidated carve-out statements of operations. The Company expenses advertising costs as incurred. The Company incurred advertising expenses of approximately $43,000 and $92,000 for the three months ended June 30, 2024 and 2023, and $201,000 and 151,000 for the six months ended June 30, 2024 and 2023, respectively.

43000

92000

201000

151000

401(k) retirement savings plan The Company’s employees are offered a 401(k)-retirement savings plan that is administered under HCMC with discretionary contribution matching opportunities. 401K employer expense amounted to $22,000 and $21,000 for the three months ended June 30, 2024 and 2023, and $43,000 and $38,000 for the six months ended June 30, 2024 and 2023, respectively.

22000

21000

43000

38000

Income Taxes The Company’s income taxes are included in HCMC’s consolidated return. For the purposes of the condensed consolidated carve-out financial statements, the income taxes for the Company have been presented on a separate return basis, under which a new stand-alone set of deferred tax assets and liabilities is created based on the financial statement accounts of the carveout. The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2024 and December 31, 2023. The Company had no uncertain tax positions as of June 30, 2024 and December 31, 2023.

Leases Operating lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company’s incremental borrowing rates. Related operating ROU assets are recognized based on the initial present value of the fixed lease payments, reduced by contributions from landlords, plus any prepaid rent and direct costs from executing the leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred. The Company did not have finance leases as of June 30, 2024 and 2023. If the Company enters into a finance lease in the future, it will be accounted for in accordance with ASC Topic 842.

Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimated amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company uses the fair value framework under FASB’s guidance, and it requires the categorization of assets and liabilities into three levels based upon the assumptions used to measure the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, would generally require significant management judgment. The three levels for categorizing assets and liabilities under the fair value measurement requirements are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20.25pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 27pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1: Fair value measurement of the asset or liability using observable inputs such as quoted prices in active markets for identical assets or liabilities.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20.25pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 27pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2: Fair value measurement of the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20.25pt"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 27pt">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3: Fair value measurement of the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability.</td></tr></table>

Business Combination The Company applies the provisions of ASC Topic 805, Business Combinations (“ASC 805”) in the accounting for acquisitions of businesses. ASC 805 requires the Company to use the acquisition method of accounting by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed and measured at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the aforementioned amounts. Acquisition-related expenses were expensed as incurred and recorded in selling, general and administrative expenses in the condensed consolidated carve-out statements of operations.

Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements.

NOTE 4. DISAGGREGATION OF REVENUES The Company’s disaggregated revenues consist of the following for the three and six months ended Jun 30, 2024 and 2023: SCHEDULE OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: right"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20240401__20240630_zWrVKkzKbWIl" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2024</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20230401__20230630_zq3CQwKa4NL" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2023</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20240101__20240630_zWcmggUdE6ff" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2024</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230101__20230630_zF0OkmJj5224" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2023</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RetailGroceryMember_zO9iGbqEHNa8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Retail Grocery</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">13,423,417</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">12,017,527</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">26,902,220</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">24,067,595</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--FoodServiceRestaurantMember_zYTYLdz43017" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Food service/restaurant</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,170,903</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,555,372</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,585,898</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,062,948</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OnlineECommerceMember_zF7E4r1f1bNc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Online/eCommerce</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">255</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,997</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">815</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,059</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zSLoiaTUxKzd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,594,575</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,574,896</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">31,488,933</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,134,602</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The Company’s disaggregated revenues consist of the following for the three and six months ended Jun 30, 2024 and 2023: SCHEDULE OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: right"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20240401__20240630_zWrVKkzKbWIl" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2024</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20230401__20230630_zq3CQwKa4NL" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2023</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20240101__20240630_zWcmggUdE6ff" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2024</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="display: none; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20230101__20230630_zF0OkmJj5224" style="border-bottom: Black 1pt solid; display: none; font-weight: bold; text-align: center">2023</td><td style="display: none; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RetailGroceryMember_zO9iGbqEHNa8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Retail Grocery</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">13,423,417</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">12,017,527</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">26,902,220</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">24,067,595</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--FoodServiceRestaurantMember_zYTYLdz43017" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Food service/restaurant</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,170,903</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,555,372</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,585,898</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,062,948</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OnlineECommerceMember_zF7E4r1f1bNc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Online/eCommerce</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">255</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,997</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">815</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,059</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zSLoiaTUxKzd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,594,575</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,574,896</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">31,488,933</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,134,602</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

13423417

12017527

26902220

24067595

2170903

1555372

4585898

3062948

255

1997

815

4059

15594575

13574896

31488933

27134602

NOTE 5. ACCOUNTS RECEIVABLE Accounts receivable is mainly related to COOP billing. HCWC bills its vendors for advertising vendors’ products in our sales channels. Advertising revenue is included in sales revenue in the condensed consolidated carve-out statement of operations. The Company recorded advertising revenue of approximately $66,000 and $44,000 for the three months ended June 30, 2024 and 2023, and $179,000 and 138,000 for the six months ended June 30, 2024 and 2023, respectively. The Company’s accounts receivable totaled approximately $157,000 and $128,000 at June 30, 2024 and December 31, 2023, respectively.

66000 44000 179000 138000

157000

128000

NOTE 6. INVENTORIES Inventories are measured at the lower of cost and net realizable value using the average cost method. If the cost of the inventories exceeds their market value, adjustments are recorded to write down excess inventory to its net realizable value. The Company recorded the write down of inventories amounting to approximately $741,000 and $428,000 for the three months ended June 30, 2024 and 2023, and $1,485,000 and $951,000 for the six months ended June 30, 2024 and 2023, respectively. The Company’s inventories consist primarily of merchandise available for resale.

741000

428000

1485000

951000

NOTE 7. ACQUISITION Ellwood Thompson’s On October 1, 2023, the Company through its wholly owned subsidiary, Healthy Choice Markets V, LLC, entered into an Asset Purchase Agreement with (i) ET Holding, Inc., d/b/a Ellwood Thompson’s Local Market, a Virginia corporation, (ii) Ellwood Thompson’s Natural Market, L.C., a Virginia limited liability company, and (iii) Richard T. Hood, an individual resident of the Commonwealth of Virginia. Pursuant to the Purchase Agreement, the Company acquired certain assets and assumed certain liabilities related to Ellwood Thompson’s grocery stores in Richmond, Virginia. The Company intends to continue to operate the grocery stores under their existing name. The purchase price under the Asset Purchase Agreement was $<span id="xdx_90E_eus-gaap--PaymentsToAcquireBusinessesGross_c20231001__20231001__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zGGn66G6cjb9" title="Cash purchase price">750,000 in cash and a promissory note provided to the seller of $<span id="xdx_90A_ecustom--PurchaseOfPromissoryNote_c20231001__20231001__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zw3LwztbmfA3" title="Purchase of promissory note">750,000 with a fair value of $<span id="xdx_906_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireeFairValue1_c20231001__20231001__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zDDLOqmmQBa6" title="Fair value">718,000. The Company expensed the discount associated with the promissory note and recognized interest expense of approximately $<span id="xdx_90D_eus-gaap--InterestExpenseOther_c20230101__20231231__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zY9WAvIGwVck" title="Interest expense">32,000 for the year ended December 31, 2023. In addition, the Company entered into a new lease agreement with the landlord and entered into an employment agreement with the store manager. <p id="xdx_89D_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MotherEarthsStorehouseIncMember_ztTRXpQLZfuh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z5nJgHkleXs3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">October 1, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: left">Cash consideration paid</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PaymentsToAcquireBusinessesGross_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zPKiQDxWREm3" style="width: 14%; text-align: right" title="Cash consideration paid">750,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Promissory note</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--NotesPayableToBankNoncurrent_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zRyVPh32W9Ab" style="border-bottom: Black 1pt solid; text-align: right" title="Promissory note">718,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total Purchase Consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferred1_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zuxO6LhJl5ol" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Purchase Consideration">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_zUfujX4T6ixj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">851,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zwjhXVI8LdGf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">291,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_zc8iTbmiJH36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of use asset - Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,325,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_zUVjsRIw9Bcg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(31,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_zdmJ7qhSYxOe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,325,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--Goodwill_iI_znPuugy4la69" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">357,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_zfz4049QAje6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zE0JiYbxByGc" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231001__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z19SYl2EYLgf" title="Useful lives (years)">8 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">291,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zZrIWHuphKt5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">291,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The acquisition is structured as an asset purchase in a business combination, and goodwill is tax-deductible, and amortizable over <span id="xdx_906_ecustom--BusinessAcquisitionGoodwillTaxDeductibleAmountAmortizationPeriod_dtY_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zUmnxGTt6od4" title="Amortization period for goodwill for tax purposes (years)">15 years for tax purposes. Revenue and Earnings The following unaudited pro forma summary presents consolidated information of the Company, including Ellwood Thompson’s, as if the business combinations had occurred on January 1, 2023, the earliest period presented herein: SCHEDULE OF UNAUDITED PROFORMA INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20230401__20230630__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zfHNNoiOwjmk" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">For Three Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="xdx_499_20230101__20230630__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zm2UXajTlsTk" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">For Six Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--BusinessAcquisitionsProFormaRevenue_zy5wwFoWKhgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">17,133,109</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">33,725,111</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_z7oCNWkMPSXk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(473,448</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(1,481,877</td><td style="text-align: left">)</td></tr> </table> The pro forma financial information includes adjustments that are directly attributable to the business combinations and are factually supportable. The pro forma adjustments include incremental amortization of intangible. The proforma data gives effects to actual operating results prior to the acquisition. These proforma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisitions occurred as of the beginning of each period presented or that may be obtained in future periods.

750000

718000

32000

<p id="xdx_89D_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MotherEarthsStorehouseIncMember_ztTRXpQLZfuh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z5nJgHkleXs3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">October 1, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: left">Cash consideration paid</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PaymentsToAcquireBusinessesGross_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zPKiQDxWREm3" style="width: 14%; text-align: right" title="Cash consideration paid">750,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Promissory note</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--NotesPayableToBankNoncurrent_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zRyVPh32W9Ab" style="border-bottom: Black 1pt solid; text-align: right" title="Promissory note">718,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total Purchase Consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferred1_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zuxO6LhJl5ol" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Purchase Consideration">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_zUfujX4T6ixj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">851,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zwjhXVI8LdGf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">291,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_zc8iTbmiJH36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of use asset - Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,325,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_zUVjsRIw9Bcg" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(31,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_zdmJ7qhSYxOe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,325,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--Goodwill_iI_znPuugy4la69" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">357,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_zfz4049QAje6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zE0JiYbxByGc" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231001__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z19SYl2EYLgf" title="Useful lives (years)">8 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">291,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_zZrIWHuphKt5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">291,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

750000

718000

1468000

851000

291000

1325000

31000

-1325000

357000

1468000

P8Y

291000

P15Y

The following unaudited pro forma summary presents consolidated information of the Company, including Ellwood Thompson’s, as if the business combinations had occurred on January 1, 2023, the earliest period presented herein: SCHEDULE OF UNAUDITED PROFORMA INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20230401__20230630__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zfHNNoiOwjmk" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">For Three Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="xdx_499_20230101__20230630__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zm2UXajTlsTk" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">For Six Months Ended</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--BusinessAcquisitionsProFormaRevenue_zy5wwFoWKhgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">17,133,109</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">33,725,111</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_z7oCNWkMPSXk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(473,448</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(1,481,877</td><td style="text-align: left">)</td></tr> </table>

17133109

33725111

-473448

-1481877

NOTE 8. ASSETS HELD FOR SALE On February 7, 2024, the Company closed the operation of the Saugerties store. The decision was based on management’s plan to maximize the profitability of the grocery segment. The Company transferred all operating assets and liabilities to other neighboring stores. The building, which is owned by the Company, has a net carrying value of approximately $544,000 and was put up for sale in February at its fair market value. The Company has classified the building as held for sale in accordance with ASC 360, “Property, Plant, and Equipment.” The building was previously classified as property, plant, and equipment (PP&E) and included in long-term assets. On July 24, 2024, the Company finalized the closing of Saugerties building sale with all parties involved and received net proceeds of $<span id="xdx_90E_eus-gaap--ProceedsFromSaleOfBuildings_c20240724__20240724__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_ztEhdfRjy40f" title="Proceeds from sale of building">695,000. The building was sold at fair market value of $<span id="xdx_905_eus-gaap--AssetsHeldForSaleLongLivedFairValueDisclosure_iI_c20240724__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_z9vTSNaL3al9" title="Fair market value">749,000 and the company paid approximately $<span id="xdx_90B_eus-gaap--LegalFees_c20240724__20240724__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zW1jlfyUVDD1" title="Legal fee">54,000 legal fee, commission and other miscellaneous expenses. The title and deed were transferred on the closing date.

544000

695000

749000

54000

NOTE 9. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consist of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20240630_z5G79XFAucu4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20231231_zfFojChAY5uk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DisplaysMember_z4BzVjRAzexk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Displays</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_z3M8xDq2vgp9" style="vertical-align: bottom; background-color: White"> <td>Building</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zKfsT18NASug" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">511,832</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">505,436</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zovVA6w89qek" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,959,553</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,925,385</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_znlvLLMUMR7d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Computer hardware & equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141,682</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OtherMachineryAndEquipmentMember_zIPfCC6CFMo8" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">710,683</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">680,718</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz9Wk_z2QxUSlXXsjg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Property, plant and equipment gross </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,682,345</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,140,367</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz9Wk_z5AJuQeFigX7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,697,406</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,463,728</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz9Wk_zTyT5OyUlvP1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total property, plant, and equipment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,984,939</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,676,639</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company incurred approximately $131,000 and $138,000 of depreciation expense for the three months ended June 30, 2024 and 2023, and $265,000 and $276,000 for the six months ended June 30, 2024 and 2023, respectively. Depreciation expense was included in operating expenses on the condensed consolidated carve-out statements of operations.

Property, plant, and equipment consist of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20240630_z5G79XFAucu4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20231231_zfFojChAY5uk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DisplaysMember_z4BzVjRAzexk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Displays</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_z3M8xDq2vgp9" style="vertical-align: bottom; background-color: White"> <td>Building</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zKfsT18NASug" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">511,832</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">505,436</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zovVA6w89qek" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,959,553</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,925,385</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_znlvLLMUMR7d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Computer hardware & equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141,682</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OtherMachineryAndEquipmentMember_zIPfCC6CFMo8" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">710,683</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">680,718</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz9Wk_z2QxUSlXXsjg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Property, plant and equipment gross </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,682,345</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,140,367</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz9Wk_z5AJuQeFigX7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,697,406</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,463,728</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz9Wk_zTyT5OyUlvP1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total property, plant, and equipment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,984,939</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,676,639</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

312146

575000

511832

505436

1959553

1925385

188131

141682

710683

680718

3682345

4140367

1697406

1463728

1984939

2676639

131000

138000

265000

276000

NOTE 10. INTANGIBLE ASSETS, NET At June 30, 2024 and December 31, 2023, intangible assets consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 19%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 19%; text-align: center"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zeE20P9zHzu" title="Useful lives (years)">8-<span id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zeCV6FRL2kvg" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zfbW2u5bu4s6" style="width: 16%; text-align: right" title="Gross Carrying amount">2,860,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zDHp1hKkJwzc" style="width: 16%; text-align: right" title="Accumulated Amortization">(1,203,943</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zJ4W1bWlA1Kc" style="width: 16%; text-align: right" title="Net Carrying Amount">1,656,057</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_zi1ZPGZbZjH3" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zFsekBH6N5Vi" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zcjzgk3CNzlk" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zWC8raUGTyM2" style="text-align: right" title="Accumulated Amortization">(1,479,806</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zowI4CWjteqj" style="text-align: right" title="Net Carrying Amount">1,189,194</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zioUqPikLgXa" title="Useful lives (years)">4-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zsFnXp1925ed" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z7mYbozwW9Bg" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z1SzCuu6Y3gk" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(728,866</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z33ZGTd7PDo3" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">873,134</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630_zYAs6gf3sXx1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">7,131,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630_z6TEIUeC2Px" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(3,412,615</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630_zdVSpAbnS6ki" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">3,718,385</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 19%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 19%; text-align: center"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zhIRUN00LMbb" title="Useful lives (years)">8-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zOvNfV3cjIMc" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zDHxfVhZVMUd" style="width: 16%; text-align: right" title="Gross Carrying amount">2,860,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zZWQrQqvJW86" style="width: 16%; text-align: right" title="Accumulated Amortization">(1,035,443</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_znokCp41GVka" style="width: 16%; text-align: right" title="Net Carrying Amount">1,824,557</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_zx1oG06OK6si" title="Useful lives (years)">4-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zD4KeDTpdoc3" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zlWCcA0lE2ji" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zG1q3r4i5n05" style="text-align: right" title="Accumulated Amortization">(1,330,972</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zOYWU8jhNjcc" style="text-align: right" title="Net Carrying Amount">1,338,028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zxciN1IM946j" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zFIaF7GrF7x4" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zaZBT8KltCHl" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_ziUVo6XdFlxg" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(586,066</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zYHo5CNBKzKk" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">1,015,934</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231_zMh5pq8B0khd" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">7,131,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231_zX1F4ZCcspEl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(2,952,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231_zKvhj0AM2vI2" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">4,178,519</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense was approximately $230,000 and $221,000 for the three months ended June 30, 2024 and 2023, and approximately $460,000 and $442,000 for the six months ended June 30, 2024 and 2023, respectively. Amortization expense was included in selling, general and administrative expenses on the condensed consolidated carve-out statements of operations. <p id="xdx_89A_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zKaXzCn0vSP7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Future annual estimated amortization expense is as follows: SCHEDULE OF FUTURE ANNUAL ESTIMATED AMORTIZATION EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; font-weight: bold">For the years ending December 31,</td><td> </td> <td colspan="2" id="xdx_49E_20240630_zgDD0VPYQ8ue" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzuie_zUMdd97z4Bb7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; width: 82%">2024 (remaining six months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">460,133</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzuie_za9TSi8jqBTe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">914,766</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzuie_zVYTH70vEb07" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">837,730</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzuie_zZqR1mH5YBQh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">698,925</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_maFLIANzuie_zOAg4PLK78db" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,486</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_maFLIANzuie_zvsFNeUy0v9b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">417,345</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzuie_zA4Wd8Naxcsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,718,385</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

At June 30, 2024 and December 31, 2023, intangible assets consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 19%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 19%; text-align: center"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zeE20P9zHzu" title="Useful lives (years)">8-<span id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zeCV6FRL2kvg" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zfbW2u5bu4s6" style="width: 16%; text-align: right" title="Gross Carrying amount">2,860,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zDHp1hKkJwzc" style="width: 16%; text-align: right" title="Accumulated Amortization">(1,203,943</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zJ4W1bWlA1Kc" style="width: 16%; text-align: right" title="Net Carrying Amount">1,656,057</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_zi1ZPGZbZjH3" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zFsekBH6N5Vi" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zcjzgk3CNzlk" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zWC8raUGTyM2" style="text-align: right" title="Accumulated Amortization">(1,479,806</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zowI4CWjteqj" style="text-align: right" title="Net Carrying Amount">1,189,194</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zioUqPikLgXa" title="Useful lives (years)">4-<span id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zsFnXp1925ed" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z7mYbozwW9Bg" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z1SzCuu6Y3gk" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(728,866</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z33ZGTd7PDo3" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">873,134</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20240630_zYAs6gf3sXx1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">7,131,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20240630_z6TEIUeC2Px" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(3,412,615</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20240630_zdVSpAbnS6ki" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">3,718,385</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 19%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 19%; text-align: center"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zhIRUN00LMbb" title="Useful lives (years)">8-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zOvNfV3cjIMc" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zDHxfVhZVMUd" style="width: 16%; text-align: right" title="Gross Carrying amount">2,860,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zZWQrQqvJW86" style="width: 16%; text-align: right" title="Accumulated Amortization">(1,035,443</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_znokCp41GVka" style="width: 16%; text-align: right" title="Net Carrying Amount">1,824,557</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_zx1oG06OK6si" title="Useful lives (years)">4-<span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zD4KeDTpdoc3" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zlWCcA0lE2ji" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zG1q3r4i5n05" style="text-align: right" title="Accumulated Amortization">(1,330,972</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zOYWU8jhNjcc" style="text-align: right" title="Net Carrying Amount">1,338,028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zxciN1IM946j" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zFIaF7GrF7x4" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zaZBT8KltCHl" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_ziUVo6XdFlxg" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(586,066</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zYHo5CNBKzKk" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">1,015,934</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231_zMh5pq8B0khd" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">7,131,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231_zX1F4ZCcspEl" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(2,952,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_980_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231_zKvhj0AM2vI2" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">4,178,519</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

P8Y

P10Y

2860000

-1203943

1656057

P4Y

P6Y

2669000

-1479806

1189194

P4Y

P5Y

1602000

-728866

873134

7131000

-3412615

3718385

P8Y

P10Y

2860000

-1035443

1824557

P4Y

P6Y

2669000

-1330972

1338028

P4Y

P5Y

1602000

-586066

1015934

7131000

-2952481

4178519

230000

221000

460000

442000

<p id="xdx_89A_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zKaXzCn0vSP7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Future annual estimated amortization expense is as follows: SCHEDULE OF FUTURE ANNUAL ESTIMATED AMORTIZATION EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; font-weight: bold">For the years ending December 31,</td><td> </td> <td colspan="2" id="xdx_49E_20240630_zgDD0VPYQ8ue" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzuie_zUMdd97z4Bb7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; width: 82%">2024 (remaining six months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">460,133</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzuie_za9TSi8jqBTe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">914,766</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzuie_zVYTH70vEb07" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">837,730</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzuie_zZqR1mH5YBQh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">698,925</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_maFLIANzuie_zOAg4PLK78db" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,486</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_maFLIANzuie_zvsFNeUy0v9b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">417,345</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzuie_zA4Wd8Naxcsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,718,385</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

460133

914766

837730

698925

389486

417345

3718385

NOTE 11. ACCOUNTS PAYABLE AND ACCRUED EXPENSES At June 30, 2024 and 2023, accounts payable and accrued expenses consisted of: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20240630_zDaWoS5eqDwj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20231231_zMsAO6vZJZz1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableTradeCurrentAndNoncurrent_iI_maAPAALzbb0_ziwmrKEJhQqj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Trade creditors</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,769,924</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,406,299</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iI_maAPAALzbb0_zpxozZSKB8tc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Accrued expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">580,520</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">514,112</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent_iTI_mtAPAALzbb0_zNPc9vTVCR51" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,350,444</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,920,411</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

At June 30, 2024 and 2023, accounts payable and accrued expenses consisted of: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20240630_zDaWoS5eqDwj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20231231_zMsAO6vZJZz1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableTradeCurrentAndNoncurrent_iI_maAPAALzbb0_ziwmrKEJhQqj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Trade creditors</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,769,924</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,406,299</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iI_maAPAALzbb0_zpxozZSKB8tc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Accrued expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">580,520</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">514,112</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent_iTI_mtAPAALzbb0_zNPc9vTVCR51" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,350,444</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,920,411</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

3769924

4406299

580520

514112

4350444

4920411

NOTE 12. CONTRACT LIABILITIES The Company’s contract liabilities consist of customer deposits, gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products when customers redeem balances or terms expire through breakage. A summary of the contract liabilities activity at June 30, 2024 and December 31, 2023 is presented below: SCHEDULE OF CONTRACT LIABILITIES ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20240101__20240630_z9FhTpkrCvz1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20230101__20231231_zK0twC3ejUL7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_zlttxio6Yr81" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Beginning balance as January 1,</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">207,513</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">198,606</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--ContractWithCustomerLiabilityIssued_zXPefUbS2qff" style="vertical-align: bottom; background-color: White"> <td>Issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">698,242</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">891,060</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--ContractWithCustomerLiabilityRedeemed_iN_di_zx4mtO79oqRa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Redeemed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(719,204</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(812,694</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_ecustom--ContractWithCustomerLiabilityBreakageRecognized_zmrTFPL1Fkv3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Breakage recognized</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(63,176</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,459</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_ztbhNi9V1f68" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">123,375</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">207,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

A summary of the contract liabilities activity at June 30, 2024 and December 31, 2023 is presented below: SCHEDULE OF CONTRACT LIABILITIES ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20240101__20240630_z9FhTpkrCvz1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20230101__20231231_zK0twC3ejUL7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_zlttxio6Yr81" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Beginning balance as January 1,</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">207,513</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">198,606</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--ContractWithCustomerLiabilityIssued_zXPefUbS2qff" style="vertical-align: bottom; background-color: White"> <td>Issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">698,242</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">891,060</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--ContractWithCustomerLiabilityRedeemed_iN_di_zx4mtO79oqRa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Redeemed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(719,204</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(812,694</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_ecustom--ContractWithCustomerLiabilityBreakageRecognized_zmrTFPL1Fkv3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Breakage recognized</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(63,176</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,459</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_ztbhNi9V1f68" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">123,375</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">207,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

207513

198606

698242 891060 719204 812694 -63176 -69459

123375

207513

NOTE 13. DEBT The following table provides a breakdown of the Company’s debt as of June 30, 2024 and December 31, 2023: SCHEDULE OF DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20240630_z4jFibcE4lG4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20231231_zuYRWVfHfiRl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--DebtInstrumentCarryingAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNotesMember_zylEvUcx2vMb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Promissory notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,649,303</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,106,508</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DebtInstrumentUnamortizedDiscount_iNI_di_hus-gaap--DebtInstrumentAxis__custom--DebtDiscountMember_zAzD1xFaSmcl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Debt discount</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(117,596</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_ztd4HJvEcsrg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total debt</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,531,707</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,106,508</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iNI_di_zo7AcBFtlXf4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Current portion of long-term debt</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,495,340</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(702,701</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LongTermDebtNoncurrent_iI_z30TAxGzrXO2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,036,367</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,403,807</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Promissory Notes In connection with the Green’s Natural Foods acquisition, on October 14, 2022, the Company issued a secured promissory note (the “Greens Note”) in the principal amount of $3,000,000 as a portion of the purchase price. The Greens Note has a five-year term, an interest rate of 6.0% per annum and is secured by the assets of the Green’s Natural Foods. The outstanding balance was approximately $2,098,000 and $2,378,000 as of June 30, 2024 and December 31, 2023, respectively. The Company incurred approximately $33,000 and $41,000 interest expense for the three months ended June 30, 2024 and 2023, and $68,000 and $84,000 interest expense for the six months ended June 30, 2024 and 2023, respectively. In connection with the Ellwood Thompson’s acquisition, on October 1, 2023, the Company issued a secured promissory note (the “Ellwood Note”) in the principal amount of $750,000, and discounted present value of $718,000 as a portion of the purchase price. The Ellwood Note has a five-year term, an interest rate of 6.0% per annum. The outstanding balance of the Ellwood Note was approximately $662,000 and 728,000 in principal amount as of June 30, 2024 and December 31, 2023, respectively. The Company recognized interest expense of approximately $10,000 and $0 for the three months ended June 30, 2024, and 2023, and $21,000 and $0 for the six months ended June 30, 2024, and 2023, respectively. On January 18, 2024, HCWC entered into a Securities Purchase Agreement (the “Bridge Financing”) with institutional investors whereby (a) HCWC issued a total of approximately $1,889,000 in unsecured promissory notes (the “Notes) and (b) on the date of the pricing of HCWC’s initial public offering (“IPO”), HCWC shall deliver shares of its common stock equal to approximately $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20240118__20240118__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zMApQRhWK1Zi" title="Issuance of common stock">1,889,000 divided by the IPO price (“Bridge Shares”). If HCWC does not consummate its IPO, it will have no obligation to issue Bridge Shares to the investors. The aggregate gross proceeds received from the investors in connection with the SPA was $<span id="xdx_903_eus-gaap--ProceedsFromIssuanceOfDebt_c20240118__20240118__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__srt--TitleOfIndividualAxis__us-gaap--InvestorMember_zbreh6zV8dUc" title="Gross proceeds">1,700,000. The Notes were issued at a 10% original issue discount (“OID”) and accrue interest at a rate of 10% per annum beginning 60 days after issuance of the Notes. All accrued and unpaid principal and interest shall be due and payable upon the earlier of (1) the closing of the IPO, (2) January 18, 2025 or (3) upon an event of default as defined in the Notes. On April 8, 2024, HCWC and the institutional investors entered into an amendment to the January 18, 2024 agreement whereby HCWC agreed to issue warrants (the “Bridge Warrants”) exercisable at $<span id="xdx_908_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20240408__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--ClassOfWarrantOrRightAxis__custom--BridgeWarrantsMember_zdLwbn58Dy04" title="Exercisable price per share">0.01 per share to purchase <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240408__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--ClassOfWarrantOrRightAxis__custom--BridgeWarrantsMember_zZJj4Vpcsy2e" title="Exercisable share">188,889 shares of Class A common stock (the “Bridge Warrant Shares”) in lieu of the <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240408__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--ClassOfWarrantOrRightAxis__custom--BridgeWarrantsMember_zSMRVVhbUr04" title="Exercisable share">188,889 shares of Class A common stock. The parties agreed to terminate any existing obligations of the institutional investors to acquire HCWC Bridge Shares as part of the IPO transaction. The Company used the intrinsic value model to determine the fair value of the Bridge Warrants on April 18, 2024 and remeasured the fair value on June 30, 2024, and concluded that the fair value of the Bridge Warrants at June 30, 2024 was $1,887,001. The Bridge Warrants represent a contingent obligation that was not recognized in the Company’s unaudited consolidated financial statements as of June 30, 2024 since it was not probable that the IPO would close as of such date. HCWC incurred approximately $23,500 of debt issuance costs in connection with the issuance of the Notes, which, together with the OID of approximately $189,000, was recorded as a debt discount and was amortized over the life of the Notes using the straight-line method since such method was not materially different from the interest method. For the three and six-months ended June 30, 2024, approximately $57,000 and $144,000 of interest expense was recognized in the accompanying condensed consolidated statements of operations. At June 30, 2024, the outstanding principal balance was approximately $1,889,000, accrued interest was approximately $49,000 and debt discount was approximately $118,000. The Company may, at its option, at any time or from time to time prepay the outstanding principal amount or any accrued but unpaid interest, in each case in whole or in part, without penalty or premium, provided that any such prepayment of any outstanding amount of principal shall be accompanied by the payment of all accrued but unpaid interest on the amount of principal being prepaid, plus any costs and fees incurred. The following table summarizes the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIERFQlQgUkVQQVlNRU5UIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_902_eus-gaap--DebtInstrumentTerm_dtY_c20240101__20240630_zO9TlfPZQNu8" title="Debt instrument repayment term">5-year repayment schedule: SCHEDULE OF DEBT REPAYMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: justify; font-weight: bold">For the years ending December 31,</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20240630_zwJzGcgxgOtj"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maDICAzXlJ_maDICAzuWz_zxJnGYzFLWN6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; width: 82%">2024 (remaining six months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">356,607</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maDICAzXlJ_maDICAzuWz_zSouEMnJRoUg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,634,931</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maDICAzXlJ_maDICAzuWz_zwLObOYVvl32" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">792,056</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maDICAzXlJ_maDICAzuWz_zlSPXCeZYfIa" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">724,333</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maDICAzXlJ_maDICAzuWz_zAoQZ4xFWdpk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">2028</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">141,376</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DebtInstrumentCarryingAmount_iI_mtDICAzXlJ_mtDICAzuWz_zqo1Bo5QD1N8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,649,303</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The following table provides a breakdown of the Company’s debt as of June 30, 2024 and December 31, 2023: SCHEDULE OF DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20240630_z4jFibcE4lG4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20231231_zuYRWVfHfiRl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--DebtInstrumentCarryingAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNotesMember_zylEvUcx2vMb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Promissory notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,649,303</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,106,508</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DebtInstrumentUnamortizedDiscount_iNI_di_hus-gaap--DebtInstrumentAxis__custom--DebtDiscountMember_zAzD1xFaSmcl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Debt discount</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(117,596</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_ztd4HJvEcsrg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total debt</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,531,707</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,106,508</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iNI_di_zo7AcBFtlXf4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Current portion of long-term debt</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,495,340</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(702,701</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LongTermDebtNoncurrent_iI_z30TAxGzrXO2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,036,367</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,403,807</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4649303

3106508

117596

4531707

3106508

2495340

702701

2036367

2403807

3000000

0.060

2098000

2378000

33000

41000

68000

84000

750000

718000

0.060

662000

728000

10000

21000

1889000

The aggregate gross proceeds received from the investors in connection with the SPA was $1,700,000. The Notes were issued at a 10% original issue discount (“OID”) and accrue interest at a rate of 10% per annum beginning 60 days after issuance of the Notes.

1700000

0.01

188889

1887001

23500

189000

57000

144000

1889000

49000

118000

The following table summarizes the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIERFQlQgUkVQQVlNRU5UIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_902_eus-gaap--DebtInstrumentTerm_dtY_c20240101__20240630_zO9TlfPZQNu8" title="Debt instrument repayment term">5-year repayment schedule: SCHEDULE OF DEBT REPAYMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: justify; font-weight: bold">For the years ending December 31,</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20240630_zwJzGcgxgOtj"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maDICAzXlJ_maDICAzuWz_zxJnGYzFLWN6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; width: 82%">2024 (remaining six months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">356,607</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maDICAzXlJ_maDICAzuWz_zSouEMnJRoUg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,634,931</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maDICAzXlJ_maDICAzuWz_zwLObOYVvl32" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">792,056</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maDICAzXlJ_maDICAzuWz_zlSPXCeZYfIa" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">724,333</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maDICAzXlJ_maDICAzuWz_zAoQZ4xFWdpk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">2028</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">141,376</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DebtInstrumentCarryingAmount_iI_mtDICAzXlJ_mtDICAzuWz_zqo1Bo5QD1N8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,649,303</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

P5Y

356607

2634931

792056

724333

141376

4649303

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: SCHEDULE OF MATURITY OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; font-weight: bold">Payments due by period</td><td> </td> <td colspan="2" id="xdx_495_20240630_zIA8q9AoslZ6" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPz2P5_zRhlLcZcyyOk" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; width: 82%">2024 (remaining six months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,554,117</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPz2P5_zUHXwiTL9U58" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,854,958</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPz2P5_zPWdmjfZF0Oh" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,520,001</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_maLOLLPz2P5_zlNxH08aGbMd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,535,080</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_maLOLLPz2P5_zfvoakSo8lpg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">834,710</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_maLOLLPz2P5_zxkKUzcbsLNd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,363,363</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPz2P5_zpWRgnDdmL0j" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total undiscounted operating lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">10,662,229</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zASRJIZPl5ia" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(817,366</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--OperatingLeaseLiability_iTI_zc8gMW82tGja" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Present value of operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">9,844,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20240630_zcqfjw5f6Bnl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20231231_zkAk6VdMUjY2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zOyfBFNppgvf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Right of use asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">9,974,601</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,412,562</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_iI_maOLLzSG7_zJLXx7pSL3U8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability, current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,665,438</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,748,824</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_maOLLzSG7_zGWdrBYwo1Kh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liability, net of current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,179,425</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,461,182</td><td style="text-align: left"> </td></tr> </table> 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: SCHEDULE OF OPERATING LEASE TERM <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Other Information</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted-average remaining lease term for operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left">Weighted-average discount rate for operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20240630_zZ3juobs1ge2" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.97</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20231231_zOrjdsMwPhe4" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.98</td><td style="width: 1%; text-align: left">%</td></tr> </table> 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: SCHEDULE OF COMPONENTS OF LEASE EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20240401__20240630_zGsh0JT0fVBe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20230401__20230630_z7qquLI5n6qc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseCost_maLCzsUv_zCLtQj3YhiHi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">643,036</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">460,626</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--VariableLeaseCost_maLCzsUv_zxic19QizrG2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">218,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">224,262</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_maLCzsUv_znzrdmk8NeP5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">79,291</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">158,433</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_mtLCzsUv_zKmL95RIsMcc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total rent expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">940,492</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">843,321</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20240101__20240630_zlI57DkGvXxa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230101__20230630_zOdytHKDqBAj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseCost_maLCzx8f_zZVtRIsHWqai" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,280,138</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">917,291</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--VariableLeaseCost_maLCzx8f_zpbv3JoHpiZi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">425,711</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">444,856</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_maLCzx8f_zoLA6JDQOl01" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">157,823</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">315,374</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LeaseCost_iT_mtLCzx8f_zXoRNQFObvB6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total rent expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,863,672</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,677,521</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 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.

P20Y

Maturity of lease liabilities under our non-cancellable operating leases as of June 30, 2024 were as follows: SCHEDULE OF MATURITY OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; font-weight: bold">Payments due by period</td><td> </td> <td colspan="2" id="xdx_495_20240630_zIA8q9AoslZ6" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPz2P5_zRhlLcZcyyOk" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; width: 82%">2024 (remaining six months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,554,117</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPz2P5_zUHXwiTL9U58" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,854,958</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPz2P5_zPWdmjfZF0Oh" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,520,001</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_maLOLLPz2P5_zlNxH08aGbMd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,535,080</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_maLOLLPz2P5_zfvoakSo8lpg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">834,710</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_maLOLLPz2P5_zxkKUzcbsLNd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,363,363</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPz2P5_zpWRgnDdmL0j" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total undiscounted operating lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">10,662,229</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zASRJIZPl5ia" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(817,366</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--OperatingLeaseLiability_iTI_zc8gMW82tGja" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Present value of operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">9,844,863</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

1554117

2854958

2520001

1535080

834710

1363363

10662229

817366

9844863

The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20240630_zcqfjw5f6Bnl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20231231_zkAk6VdMUjY2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zOyfBFNppgvf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Right of use asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">9,974,601</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,412,562</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_iI_maOLLzSG7_zJLXx7pSL3U8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability, current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,665,438</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,748,824</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_maOLLzSG7_zGWdrBYwo1Kh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liability, net of current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">7,179,425</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,461,182</td><td style="text-align: left"> </td></tr> </table>

9974601

11412562

2665438

2748824

7179425

8461182

722000

368000

1438000

1063000

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: SCHEDULE OF OPERATING LEASE TERM <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Other Information</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted-average remaining lease term for operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left">Weighted-average discount rate for operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20240630_zZ3juobs1ge2" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.97</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20231231_zOrjdsMwPhe4" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.98</td><td style="width: 1%; text-align: left">%</td></tr> </table>

P5Y

0.0397

0.0398

940000

843000

1864000

1668000

The components of lease expenses for the three and six months ended June 30, 2024 and 2023 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20240401__20240630_zGsh0JT0fVBe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20230401__20230630_z7qquLI5n6qc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseCost_maLCzsUv_zCLtQj3YhiHi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">643,036</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">460,626</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--VariableLeaseCost_maLCzsUv_zxic19QizrG2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">218,165</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">224,262</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_maLCzsUv_znzrdmk8NeP5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">79,291</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">158,433</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_mtLCzsUv_zKmL95RIsMcc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total rent expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">940,492</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">843,321</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20240101__20240630_zlI57DkGvXxa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20230101__20230630_zOdytHKDqBAj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseCost_maLCzx8f_zZVtRIsHWqai" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,280,138</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">917,291</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--VariableLeaseCost_maLCzx8f_zpbv3JoHpiZi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">425,711</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">444,856</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_maLCzx8f_zoLA6JDQOl01" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">157,823</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">315,374</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LeaseCost_iT_mtLCzx8f_zXoRNQFObvB6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total rent expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,863,672</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,677,521</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

643036

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940492

843321

1280138

917291

425711

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157823

315374

1863672

1677521

1365000

1002000

NOTE 15. RELATED PARTY TRANSACTIONS The Company has not historically operated as a separate, stand-alone company and, accordingly has had various relationships with HCMC whereby HCMC provided services to the Company as noted below. Related party transactions include allocation of general corporate expenses and advances from parent. Allocation of General Corporate Expenses HCMC provides human resources, accounting, payroll processing, legal and other managerial services to the Company. The accompanying condensed consolidated carve-out financial statements include allocations of these expenses. Management adopted a proportional cost allocation method to allocate HCMC expenses to the Company. The allocation method calculates the appropriate share of overhead costs to the Company based on management’s estimate that the sum of management time and resources spent managing the Company is approximately equal to the amount of time and resources spent managing HCMC and its subsidiaries. As a result, 50% of HCMC overhead on a weighted average basis was allocated to the Company based on the fact that management spent equal amount of time to manage HCMC and the Company. The Company believes the allocation methodology used is reasonable and has been consistently applied, and results in an appropriate allocation of costs incurred. However, these allocations may not be indicative of the cost had the Company been a stand-alone entity or of future services. HCMC allocated $0.6 million and $0.7 million for the three months ended June 30, 2024 and 2023, and approximately $1.3 million and $1.4 million for the six months ended June 30, 2024 and 2023, respectively. Such amounts will not be cash settled and are included in the Net Parent’s Investment. Investment by Parent For the six months ended June 30, 2024, the net operating expenses of $<span id="xdx_90D_eus-gaap--OperatingExpenses_pn5n6_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zzNaITpQ1k1l" title="Net operating expense">1.3 million incurred by HCMC on behalf of the Company was included in the Net Parent’s Investment. For the six month ended June 30, 2023, $<span id="xdx_90E_eus-gaap--OperatingExpenses_pn5n6_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zyDwh9wFFfp3" title="Net operating expense">1.4 million net operating expenses incurred by HCMC on behalf of the Company, and $<span id="xdx_900_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_pn5n6_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zqq0qkEJGdQl" title="Loan payment">0.1 million HCMC loan payment on behalf of Green’s Natural Foods were included in the Net Parent’s Investment. Intercompany Receivable and Payable There is no intercompany agreement between the Company and HCMC. Management has determined those intercompany receivables and payables will be settled within twelve months after the balance sheet date. As a result, the Company’s intercompany balances are reflected as “due to” or “due from” accounts in the condensed consolidated carve-out balance sheets. The Company had a net receivable balance of $5.8 million and $3.8 million from HCMC as of June 30, 2024 and December 31, 2023, respectively.

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NOTE 16. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time the Company may be involved in various claims and legal actions arising in the ordinary course of our business. With respect to legal costs, we record such costs as incurred.

NOTE 17. SUBSEQUENT EVENTS On July 18, 2024, the Company through its wholly owned subsidiary, Healthy Choice Markets VI, LLC, entered into an Asset Purchase Agreement (the “Purchase Agreement”) with (i) GreenAcres Markets of Oklahoma, LLC, an Oklahoma limited liability company and GACorp, Inc., a Kansas corporation (each, a “Seller”; collectively, the “Sellers”); and (ii) the group of equity holders owning the majority interests of the Sellers. The Company acquired certain assets and assumed certain liabilities of five organic and natural health food and vitamin stores located in Oklahoma and Kansas. The purchase price under the Purchase Agreement is $<span id="xdx_90B_eus-gaap--PaymentsToAcquireBusinessesGross_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--HealthyChoiceMarketsVILLCMember_zPNx2aH8enEc" title="Purchase amount">7,300,000, of which $<span id="xdx_90B_eus-gaap--PaymentsToAcquireBusinessesGross_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--HealthyChoiceMarketsVILLCMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNotesMember_z1tfT43PgcY3" title="Purchase amount">1,825,000 is in the form of a promissory note. The Company has engaged a professional valuation firm to perform the valuation of the assets acquired and liabilities assumed. On July 18, 2024 (the “Effective Date”), HCWC entered into a loan and security agreement with a private lender to support its expansion plans and funding of any working capital needs. The face amount of the loan (the “Acquisition Loan’) is $<span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_iI_c20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--HealthyChoiceMarketsVILLCMember_zseT79xwU9ub" title="Face amount">7,500,000 with <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--HealthyChoiceMarketsVILLCMember_zssISAwlzeOh" title="Annual interest percentage">12% annual interest and <span id="xdx_902_eus-gaap--DebtInstrumentTerm_pid_dtY_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--HealthyChoiceMarketsVILLCMember_zWfIajWSHMFf" title="Debt term">3 years in term. The loan is guaranteed by all of the subsidiaries of HCWC (the “Guarantors”) and secured by substantially all of the assets of HCWC and the Guarantors. The Acquisition Loan maybe prepaid at any time at a premium in the amount of ten percent (<span id="xdx_903_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--LoanAndSecurityAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--HealthyChoiceMarketsVILLCMember_zfgehlaQniOe" title="Acquisition percentage">10%) of the principal amount of the Acquisition Loan outstanding prior to such prepayment. Payments on the Acquisition Loan are required to be made as follows: $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfLongTermDebt_pid_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--AwardTypeAxis__custom--FirstAnniversaryMember_zcJ3qF5j7O02" title="Proceeds from long term debt">1,125,000 on first anniversary of the Loan Effective Date, $<span id="xdx_90C_eus-gaap--ProceedsFromIssuanceOfLongTermDebt_pid_c20240718__20240718__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--AwardTypeAxis__custom--SecondAnniversaryMember_ziS6NvktrfAe" title="Proceeds from long term debt">1,875,000 on the second anniversary of the Loan Effective Date, and the remaining outstanding principal balance of principal and accrued interest on the third anniversary of the Loan Effective Date. On July 24, 2024, the Company finalized the closing of Saugerties building sale with all parties involved, and received net proceeds of $695,000. The title and deed were transferred on the closing date. On July 25, 2024, the Company filed Amendment No. 5 to its registration statement on Form S-1 with the Commission with respect to the Spin-Off. On July 25, 2024, the Company filed Amendment No. 6 to its registration statement on Form S-1 with the Commission with respect to the IPO. On July 31, 2024, one of the Company’s subsidiaries, Healthy Choice Markets IV, LLC, was served with a lawsuit filed by a former employee alleging violations of state and federal wage and hour laws. The Company believes the claims are without merit and intends to vigorously defend against the lawsuit. While the outcome of this litigation cannot be predicted with certainty, the Company does not believe that the lawsuit, if adversely resolved, would have a material adverse effect on its financial condition, results of operations, or cash flows. On August 17, 2024, the Company amended its financing agreement with a key investor. The agreement extended the maturity date on its $5 million revolving credit facility from August 31, 2025 to February 28, 2026. On August 30, 2024, the Company filed Amendment No. 6 to its registration statement on Form S-1 with the Commission with respect to the Spin-Off. On August 30, 2024, the Company filed Amendment No. 7 to its registration statement on Form S-1 with the Commission with respect to the IPO. On September 11, 2024, the Company filed Amendment No. 7 to its registration statement on Form S-1 with the Commission with respect to the Spin-Off. On September 11, 2024, the Company filed Amendment No. 8 to its registration statement on Form S-1 with the Commission with respect to the IPO. On September 12, 2024, the Company filed Amendment No. 8 to its registration statement on Form S-1 with the Commission with respect to the Spin-Off.

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NOTE 1. ORGANIZATION Organization Healthy Choice Wellness Corp. (the “Company”) is a Delaware corporation organized in September 2022. It is a wholly owned operating segment of Healthier Choices Management Corp (“HCMC”), a U.S. based holding company, which trades on the OTC Pink Sheets, specializing in providing consumers with healthier alternatives to everyday lifestyle choices. Through its wholly owned subsidiaries, Healthy Choice Markets, Inc., Healthy Choice Markets 2, LLC, Healthy Choice Markets 3, LLC, Healthy Choice Markets IV, LLC, and Healthy Choice Markets V, LLC respectively, the Company operates: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products, and natural household items.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products, and natural household items.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Mother Earth’s Storehouse, a two-store organic and health food and vitamin chain in New York’s Hudson Valley, has been in existence for over 40 years.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries & bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia.</td></tr> </table> Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company operates a Healthy Choice Wellness Center in Kingston, NY and has a licensing agreement for a Healthy Choice Wellness Center located at the Casbah Spa and Salon in Fort Lauderdale, FL. These centers offer multiple vitamin drip mixes and intramuscular shots for clients to choose from that are designed to help boost immunity, fight fatigue and stress, reduce inflammation, enhance weight loss, and efficiently deliver antioxidants and anti-aging mixes. Additionally, there are IV vitamin mixes and shots for health, beauty, and re-hydration. Through its wholly owned subsidiary, Healthy U Wholesale, Inc., the Company sells vitamins and supplements, as well as health, beauty and personal care products through its on-line retail subsidiary, The Vitamin Store, LLC. Sourcing and Vendors We source from multiple suppliers. These suppliers range from small independent businesses to multinational conglomerates. For the years ended December 31, 2023 and 2022, approximately <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneVendorMember_zIHCL6YteeS9" title="Concentration risk percentage">41% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneVendorMember_zFMLzRnpzNJ4" title="Concentration risk percentage">37% of our total purchases were from one vendor. Spin-Off HCMC has commenced steps to spin off (“Spin-Off”) its grocery segment and wellness business into a new publicly traded company (hereinafter referred to as “HCWC” or “The Company”). HCWC will continue the path of growth in the wellness verticals started by HCMC and explore other growth opportunities that comport with HCMC’s healthier lifestyle mission. Following the Spin-Off, HCMC will retain its entire patent suite, the Q-Cup® brand, and continue to develop its patent suite through R&D as well as continuing its path of enforcing its patent rights against infringers and attempting to monetize said patents through licensing deals. At the time of the Spin-Off, HCMC will distribute all the outstanding shares of Common Stock held by it on a pro rata basis to holders of HCMC’s common stock. Shares of HCMC’s common stock outstanding as of the record date for the Spin-Off (the “Record Date”), will entitle the holder thereof to receive a certain number of shares of Common Stock in HCWC. The distribution will be made in book-entry form by a distribution agent. Fractional shares of Common Stock will not be distributed in the Spin-Off and any fractional amounts will be rounded down.

0.41

0.37

<p id="xdx_800_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zAdqC6Ah32pc" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">NOTE 2. GOING CONCERN AND MANAGEMENT’S PLANS The accompanying consolidated carve-out financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern and realization of assets and satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the outcome of any uncertainties related to our going concern assessment. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. As of December 31, 2023, the Company had approximately $1.4 million in cash and a working capital deficit of approximately $2.6 million. For the year ended December 31, 2023, the Company incurred net losses of approximately $9.9 million and cash used in operating activities of approximately $2.5 million. The Company’s liquidity needs through December 31, 2023 have been satisfied through additional investments from HCMC, our parent company (see Note 15 Related Party Transactions). Subsequent to March 31, 2024, the Company secured a financing commitment with a key investor (See Note 18 Subsequent Events). This commitment allows the Company to draw up to $5 million from its revolving credit facility to be used for expansion and working capital purposes. The loan will be repayable in full on August 31, 2025 and the interest rate on the loan is 12%. After the spin-off, the Company will need to develop new sources of financing to fund future operations and capital expansion. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. The Company believes its cash on hand and its ability to draw on its $5 million line of credit will enable the Company to meet its obligations and capital requirements for at least the twelve months from the date these financial statements are issued. Accordingly, no adjustment has been made to the financial statements to account for this uncertainty.

1400000

-2600000

-9900000

-2500000

5000000

0.12

5000000

NOTE 3. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated carve-out financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company has historically operated as part of HCMC and not as a standalone company. Financial statements representing the historical operations of HCMC’s grocery segment have been derived from HCMC’s historical accounting records and are presented on a carve-out basis. HCMC has commenced steps to spin off its grocery segment and wellness business into HCWC. The entities under the grocery segment and wellness business were contributed (100%) to HCWC, as such the accompanying consolidated carve-out financial statements have been contributed to HCWC using their carryover basis in accordance with Accounting Standard Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”) for entities under common control. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the consolidated carve-out financial statements. The consolidated carve-out financial statements also include allocations of certain general, administrative, sales and marketing expenses from HCMC. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company operated independently of HCMC. Related-party allocations are discussed further in Note 15. Principles of Consolidation The consolidated carve-out financial statements include the accounts of the Company and its wholly-owned subsidiaries, Healthy Choice Markets, Inc. (“Ada’s Natural Market”), Healthy Choice Markets 2, LLC (“Paradise Health and Nutrition”), Healthy Choice Markets 3, LLC (“Mother Earth’s Storehouse”), Healthy Choices Markets 3 Real Estate LLC, Healthy Choice Markets IV, LLC (Green’s Natural Foods), Healthy Choice Markets V, LLC (Ellwood Thompson’s), Healthy Choice Wellness, LLC, Healthy Choice Wellness II, LLC,, and Healthy U Wholesale, Inc (“The Vitamin Store, LLC”). All intercompany accounts and transactions have been eliminated in consolidation. Net Parent Investment The accompanying consolidated carve-out financial statements were derived from the consolidated financial statements of HCMC on a carve-out basis, and the financial statements include allocations of certain general, administrative, legal, and marketing expenses from HCMC. The primary components of the net parent’s investment are intercompany balances other than related party payables, the allocation of shared costs, and funding received to cover any shortfall in operating cash requirements. Balances between HCMC and the Company that were not historically cash settled are included in net parent investment. Net parent’s investment represents the cumulative investment by HCMC in the Company through the dates presented. Use of Estimates in the Preparation of the Financial Statements The preparation of consolidated carve-out financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated carve-out financial statements, and the reported amounts of net revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include inventory provisions, useful lives and impairment of long-lived assets, deferred taxes and related valuation allowances, allocation of corporate general expenses, and the valuation of the assets and liabilities acquired in business combinations. Certain of management’s estimates could be affected by external conditions, including those unique to our industry, and general economic conditions. It is possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and records adjustments when necessary. Revenue Recognition Revenues from product sales and services rendered, net of promotional discounts, manufacturer coupons and rebates, return allowances, and sales and consumption taxes, are recorded when products are delivered, title passes to customers and collection is likely to occur. Title passes to customers at the point of sale for retail and upon delivery of products for wholesale. Return allowances, which reduce revenue, are estimated using historical experience. The Company recognizes revenue in accordance with the following five-step model: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 3%">●</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 95%; text-align: justify">identify arrangements with customers.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">identify performance obligations.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 3%">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 95%">determine transaction price.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">allocate transaction price to the separate performance obligations in the arrangement, if more than one exists; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">recognize revenue as performance obligations are satisfied.</td></tr> </table> Shipping and Handling Shipping charges billed to customers are included in net sales and the related shipping and handling costs are included in cost of sales. The Company incurred shipping and handling costs of approximately $117,000 and $91,000 for the years ended December 31, 2023 and 2022, respectively. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. The majority of the Company’s cash is concentrated in one financial institution, which is in excess of Federal Deposit Insurance Corporation (FDIC) coverage. The Company has not experienced any losses in such accounts. The Company did not have any cash equivalents as of December 31, 2023 and 2022. A summary of the financial institution that had cash in excess of FDIC limits of $250,000 as of December 31, 2023 and December 31, 2022 is presented below: <p id="xdx_89F_eus-gaap--ScheduleOfCashAndCashEquivalentsTableTextBlock_zoYEp1V80bb5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20231231_zYvtysqME6a4" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20221231_zWyNJitMPvrb" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--CashFDICInsuredAmount_iI_zvIBoOb40Zq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Total cash in excess of FDIC limits of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90C_ecustom--CashFDICAmount_iI_c20231231_zhAv5rYIKbk4" title="Cash, FDIC amount"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_907_ecustom--CashFDICAmount_iI_c20221231_zOAZSJQWXLrg" title="Cash, FDIC amount">250,000</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">161,644</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">949,677</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_845_ecustom--AccountsReceivableContractAssetsAndContractLiabilitiesPolicy_zMq8MU2i8MDb" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivables are claims to consideration which are unconditional; meaning no performance obligations remain for the Company and only the passage of time is necessary before collection. Contract assets are distinguished from accounts receivable as performance obligations remain before claims to consideration become unconditional. By nature of the Company’s operations, contract assets are typically not recognized. Contract liabilities are recorded when customers transfer consideration in advance of delivery of products or services, which the Company records for gift cards and loyalty reward programs. When one party to an arrangement performs before the other(s), the Company records an account receivable, contract asset or contract liability. The majority of arrangements with customers contain one performance obligation: to provide a distinct set of products or services. Most performance obligations are satisfied simultaneously as the Company exchanges products or services for customer payment. Exceptions include gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products or services at a future date. As gift cards are purchased and loyalty points earned, contract liabilities are recorded until the performance obligations are satisfied through delivery of products or services or breakage based on gift card and loyalty reward program term limits. The Company’s breakage policy is twenty-four months for gift cards and twelve months for loyalty rewards. Loyalty rewards are earned at five percent on qualifying purchases and the reward functions as an allocation of transaction price from the period earned by the customer to the period the performance obligation is satisfied by the Company. As such, all contract liabilities are expected to be recognized within a twenty-four-month period. Other Current Assets Other current assets are the non-trade related assets that the Company owns, benefits from, or uses to generate income that can be converted into cash within one business cycle. Included in “Other current assets” on our consolidated carve-out balance sheets are amounts primarily related to other receivables or non-trade receivable from government and other companies. Inventories Inventories are measured at the lower of cost and net realizable value using the average cost method. If the cost of the inventories exceeds their net realizable value, adjustments are recorded to write-down their excess carrying value to their net realizable value. The Company’s inventories consist primarily of merchandise available for resale, such as fresh produce, perishable grocery items and non-perishable consumable goods. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the respective asset, after the asset is placed in service. Revenue earning property, plant, and equipment includes signage, furniture and fixtures, building, computer hardware, appliance, cooler, and displays have useful lives ranging from two to seven years. Leasehold improvements are amortized over the shorter of the life of the improvement or the term of the lease. <p id="xdx_847_eus-gaap--GoodwillAndIntangibleAssetsPolicyTextBlock_z8t0MSSjQGM4" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">Identifiable Intangible Assets and Goodwill Identifiable intangible assets are recorded at cost, or when acquired as part of a business acquisition, at estimated fair value. Certain identifiable intangible assets are amortized over 4 to 10 years. Similar to tangible personal property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indefinite-lived intangible assets, such as goodwill are not amortized. <p id="xdx_84C_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_z8mvN1P42IM6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">Impairment of Long-Lived Assets The Company reviews all long-lived assets such as property and equipment and amortized intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future cash flows expected to be generated by the asset or asset group. Impairment is measured by the amount by which the carrying value of the asset(s) exceeds their fair value. The Company conducted the long-lived assets impairment test, and based on Step 1 qualitative assessment, the Company concluded that the recurring losses coupled with the reduction in same store revenue and negative working capital were triggering events at December 31, 2023. The Company hired a third-party valuation firm to perform Step 2 quantitative assessment on long-lived assets. The Company used the undiscounted cash flow method at weighted average cost of capital of 16.5% as discount rate to calculate the fair value of the total assets. Based on the Step 2 quantitative assessment, the Company’s long-lived assets were not impaired as of December 31, 2023. Goodwill The Company assesses the carrying amounts of goodwill for recoverability on at least an annual basis or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value-based test. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, and the useful life over which cash flows will occur. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for the Company. Our annual impairment test is conducted on September 30 of each year or more often if deemed necessary. The Company incurred a non-cash impairment charge of $6.1 million dollar for the year ended December 31, 2023. See Note 9 - Goodwill. There was no impairment of goodwill during the year ended December 31, 2022. Advertising Advertising expense is classified as selling, general and administrative expense on the consolidated carve-out statements of operations. The Company expenses advertising costs as incurred. The Company incurred advertising expenses of approximately $564,000 and $145,000 for the years ended December 31, 2023 and 2022, respectively. 401(k) retirement savings plan The Company’s employees are offered a 401(k)-retirement savings plan that is administered under HCMC with discretionary contribution matching opportunities. 401K employer expense amounted to $82,000 and $25,000 for the years ended December 31, 2023 and 2022, respectively. Income Taxes The Company’s income taxes are included in HCMC’s consolidated return. For the purposes of the consolidated carve-out financial statements, the income taxes for the Company have been presented on a separate return basis, under which a new stand-alone set of deferred tax assets and liabilities is created based on the financial statement accounts of the carveout. The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2023 and December 31, 2022. The Company had no uncertain tax positions as of December 31, 2023 and December 31, 2022. Leases Operating lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company’s incremental borrowing rates. Related operating ROU assets are recognized based on the initial present value of the fixed lease payments, reduced by contributions from landlords, plus any prepaid rent and direct costs from executing the leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred. The Company did not have finance leases as of December 31, 2023 and 2022. If the Company enters into a finance lease in the future, it will be accounted for in accordance with ASC Topic 842. Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimated amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company uses the fair value framework under FASB’s guidance, and it requires the categorization of assets and liabilities into three levels based upon the assumptions used to measure the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, would generally require significant management judgment. The three levels for categorizing assets and liabilities under the fair value measurement requirements are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1: Fair value measurement of the asset or liability using observable inputs such as quoted prices in active markets for identical assets or liabilities.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2: Fair value measurement of the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3: Fair value measurement of the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability.</td></tr> </table> Business Combination The Company applies the provisions of ASC Topic 805, Business Combinations (“ASC 805”) in the accounting for acquisitions of businesses. ASC 805 requires the Company to use the acquisition method of accounting by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed and measured at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the aforementioned amounts. Acquisition-related expenses were expensed as incurred and recorded in selling, general and administrative expenses in the consolidated carve-out statements of operations. <p id="xdx_843_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zLrGgRbBdYGh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (ASC 326)” This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to certain financial assets. The Company adopted ASC 326 on January 1, 2023, and estimated expected credit losses based on an aging schedule and provisioned approximately $15,000 credit loss for the year ended December 31, 2023. On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. Reclassification Certain amounts in the consolidated carve-out financial statements and related notes have been reclassified to conform to the current year presentation. Such reclassifications do not impact the Company’s previously reported financial position or net loss. Below summarized reclassifications we made: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Due from related party of $2.3 million was previously included in the consolidated carve-out balance sheets in other assets as of December 31, 2022, and has been reclassified to due from related party in the consolidated carve-out balance sheets.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Cash usage in due from related party of $<span id="xdx_90B_ecustom--IncreaseDecreaseInOtherAssets_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z8iRcnbzRxH4" title="Increase decrease in other assets">926,000 was previously included in other assets in the consolidated statements of cash flow for the year ended December 31, 2022, and has been reclassified to due from related party in the consolidated carve-out statements of cash flows.</td></tr> </table>

Basis of Presentation The accompanying consolidated carve-out financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company has historically operated as part of HCMC and not as a standalone company. Financial statements representing the historical operations of HCMC’s grocery segment have been derived from HCMC’s historical accounting records and are presented on a carve-out basis. HCMC has commenced steps to spin off its grocery segment and wellness business into HCWC. The entities under the grocery segment and wellness business were contributed (100%) to HCWC, as such the accompanying consolidated carve-out financial statements have been contributed to HCWC using their carryover basis in accordance with Accounting Standard Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”) for entities under common control. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the consolidated carve-out financial statements. The consolidated carve-out financial statements also include allocations of certain general, administrative, sales and marketing expenses from HCMC. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company operated independently of HCMC. Related-party allocations are discussed further in Note 15.

Principles of Consolidation The consolidated carve-out financial statements include the accounts of the Company and its wholly-owned subsidiaries, Healthy Choice Markets, Inc. (“Ada’s Natural Market”), Healthy Choice Markets 2, LLC (“Paradise Health and Nutrition”), Healthy Choice Markets 3, LLC (“Mother Earth’s Storehouse”), Healthy Choices Markets 3 Real Estate LLC, Healthy Choice Markets IV, LLC (Green’s Natural Foods), Healthy Choice Markets V, LLC (Ellwood Thompson’s), Healthy Choice Wellness, LLC, Healthy Choice Wellness II, LLC,, and Healthy U Wholesale, Inc (“The Vitamin Store, LLC”). All intercompany accounts and transactions have been eliminated in consolidation.

Net Parent Investment The accompanying consolidated carve-out financial statements were derived from the consolidated financial statements of HCMC on a carve-out basis, and the financial statements include allocations of certain general, administrative, legal, and marketing expenses from HCMC. The primary components of the net parent’s investment are intercompany balances other than related party payables, the allocation of shared costs, and funding received to cover any shortfall in operating cash requirements. Balances between HCMC and the Company that were not historically cash settled are included in net parent investment. Net parent’s investment represents the cumulative investment by HCMC in the Company through the dates presented.

Use of Estimates in the Preparation of the Financial Statements The preparation of consolidated carve-out financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated carve-out financial statements, and the reported amounts of net revenue and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include inventory provisions, useful lives and impairment of long-lived assets, deferred taxes and related valuation allowances, allocation of corporate general expenses, and the valuation of the assets and liabilities acquired in business combinations. Certain of management’s estimates could be affected by external conditions, including those unique to our industry, and general economic conditions. It is possible that these external factors could have an effect on our estimates that could cause actual results to differ from our estimates. The Company re-evaluates all its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

Revenue Recognition Revenues from product sales and services rendered, net of promotional discounts, manufacturer coupons and rebates, return allowances, and sales and consumption taxes, are recorded when products are delivered, title passes to customers and collection is likely to occur. Title passes to customers at the point of sale for retail and upon delivery of products for wholesale. Return allowances, which reduce revenue, are estimated using historical experience. The Company recognizes revenue in accordance with the following five-step model: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 3%">●</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 95%; text-align: justify">identify arrangements with customers.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">identify performance obligations.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 3%">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 95%">determine transaction price.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">allocate transaction price to the separate performance obligations in the arrangement, if more than one exists; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">recognize revenue as performance obligations are satisfied.</td></tr> </table>

Shipping and Handling Shipping charges billed to customers are included in net sales and the related shipping and handling costs are included in cost of sales. The Company incurred shipping and handling costs of approximately $117,000 and $91,000 for the years ended December 31, 2023 and 2022, respectively.

117000

91000

Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. The majority of the Company’s cash is concentrated in one financial institution, which is in excess of Federal Deposit Insurance Corporation (FDIC) coverage. The Company has not experienced any losses in such accounts. The Company did not have any cash equivalents as of December 31, 2023 and 2022. A summary of the financial institution that had cash in excess of FDIC limits of $250,000 as of December 31, 2023 and December 31, 2022 is presented below: <p id="xdx_89F_eus-gaap--ScheduleOfCashAndCashEquivalentsTableTextBlock_zoYEp1V80bb5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20231231_zYvtysqME6a4" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20221231_zWyNJitMPvrb" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--CashFDICInsuredAmount_iI_zvIBoOb40Zq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Total cash in excess of FDIC limits of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90C_ecustom--CashFDICAmount_iI_c20231231_zhAv5rYIKbk4" title="Cash, FDIC amount"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_907_ecustom--CashFDICAmount_iI_c20221231_zOAZSJQWXLrg" title="Cash, FDIC amount">250,000</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">161,644</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">949,677</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

250000 250000

<p id="xdx_89F_eus-gaap--ScheduleOfCashAndCashEquivalentsTableTextBlock_zoYEp1V80bb5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20231231_zYvtysqME6a4" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20221231_zWyNJitMPvrb" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--CashFDICInsuredAmount_iI_zvIBoOb40Zq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Total cash in excess of FDIC limits of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90C_ecustom--CashFDICAmount_iI_c20231231_zhAv5rYIKbk4" title="Cash, FDIC amount"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIENBU0ggQU5EIENBU0ggRVFVSVZBTEVOVFMgKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_907_ecustom--CashFDICAmount_iI_c20221231_zOAZSJQWXLrg" title="Cash, FDIC amount">250,000</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">161,644</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">949,677</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

250000 250000

161644

949677

<p id="xdx_845_ecustom--AccountsReceivableContractAssetsAndContractLiabilitiesPolicy_zMq8MU2i8MDb" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivables are claims to consideration which are unconditional; meaning no performance obligations remain for the Company and only the passage of time is necessary before collection. Contract assets are distinguished from accounts receivable as performance obligations remain before claims to consideration become unconditional. By nature of the Company’s operations, contract assets are typically not recognized. Contract liabilities are recorded when customers transfer consideration in advance of delivery of products or services, which the Company records for gift cards and loyalty reward programs. When one party to an arrangement performs before the other(s), the Company records an account receivable, contract asset or contract liability. The majority of arrangements with customers contain one performance obligation: to provide a distinct set of products or services. Most performance obligations are satisfied simultaneously as the Company exchanges products or services for customer payment. Exceptions include gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products or services at a future date. As gift cards are purchased and loyalty points earned, contract liabilities are recorded until the performance obligations are satisfied through delivery of products or services or breakage based on gift card and loyalty reward program term limits. The Company’s breakage policy is twenty-four months for gift cards and twelve months for loyalty rewards. Loyalty rewards are earned at five percent on qualifying purchases and the reward functions as an allocation of transaction price from the period earned by the customer to the period the performance obligation is satisfied by the Company. As such, all contract liabilities are expected to be recognized within a twenty-four-month period. Other Current Assets Other current assets are the non-trade related assets that the Company owns, benefits from, or uses to generate income that can be converted into cash within one business cycle. Included in “Other current assets” on our consolidated carve-out balance sheets are amounts primarily related to other receivables or non-trade receivable from government and other companies.

Inventories Inventories are measured at the lower of cost and net realizable value using the average cost method. If the cost of the inventories exceeds their net realizable value, adjustments are recorded to write-down their excess carrying value to their net realizable value. The Company’s inventories consist primarily of merchandise available for resale, such as fresh produce, perishable grocery items and non-perishable consumable goods.

Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the expected useful life of the respective asset, after the asset is placed in service. Revenue earning property, plant, and equipment includes signage, furniture and fixtures, building, computer hardware, appliance, cooler, and displays have useful lives ranging from two to seven years. Leasehold improvements are amortized over the shorter of the life of the improvement or the term of the lease.

P7Y

<p id="xdx_847_eus-gaap--GoodwillAndIntangibleAssetsPolicyTextBlock_z8t0MSSjQGM4" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">Identifiable Intangible Assets and Goodwill Identifiable intangible assets are recorded at cost, or when acquired as part of a business acquisition, at estimated fair value. Certain identifiable intangible assets are amortized over 4 to 10 years. Similar to tangible personal property and equipment, the Company periodically evaluates identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indefinite-lived intangible assets, such as goodwill are not amortized.

P4Y

P10Y

<p id="xdx_84C_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_z8mvN1P42IM6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">Impairment of Long-Lived Assets The Company reviews all long-lived assets such as property and equipment and amortized intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future cash flows expected to be generated by the asset or asset group. Impairment is measured by the amount by which the carrying value of the asset(s) exceeds their fair value. The Company conducted the long-lived assets impairment test, and based on Step 1 qualitative assessment, the Company concluded that the recurring losses coupled with the reduction in same store revenue and negative working capital were triggering events at December 31, 2023. The Company hired a third-party valuation firm to perform Step 2 quantitative assessment on long-lived assets. The Company used the undiscounted cash flow method at weighted average cost of capital of 16.5% as discount rate to calculate the fair value of the total assets. Based on the Step 2 quantitative assessment, the Company’s long-lived assets were not impaired as of December 31, 2023.

0.165

Goodwill The Company assesses the carrying amounts of goodwill for recoverability on at least an annual basis or when events or changes in circumstances indicate evidence of potential impairment exists, using a fair value-based test. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, and the useful life over which cash flows will occur. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for the Company. Our annual impairment test is conducted on September 30 of each year or more often if deemed necessary. The Company incurred a non-cash impairment charge of $6.1 million dollar for the year ended December 31, 2023. See Note 9 - Goodwill. There was no impairment of goodwill during the year ended December 31, 2022.

6100000

Advertising Advertising expense is classified as selling, general and administrative expense on the consolidated carve-out statements of operations. The Company expenses advertising costs as incurred. The Company incurred advertising expenses of approximately $564,000 and $145,000 for the years ended December 31, 2023 and 2022, respectively.

564000

145000

401(k) retirement savings plan The Company’s employees are offered a 401(k)-retirement savings plan that is administered under HCMC with discretionary contribution matching opportunities. 401K employer expense amounted to $82,000 and $25,000 for the years ended December 31, 2023 and 2022, respectively.

82000

25000

Income Taxes The Company’s income taxes are included in HCMC’s consolidated return. For the purposes of the consolidated carve-out financial statements, the income taxes for the Company have been presented on a separate return basis, under which a new stand-alone set of deferred tax assets and liabilities is created based on the financial statement accounts of the carveout. The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2023 and December 31, 2022. The Company had no uncertain tax positions as of December 31, 2023 and December 31, 2022.

Leases Operating lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company’s incremental borrowing rates. Related operating ROU assets are recognized based on the initial present value of the fixed lease payments, reduced by contributions from landlords, plus any prepaid rent and direct costs from executing the leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred. The Company did not have finance leases as of December 31, 2023 and 2022. If the Company enters into a finance lease in the future, it will be accounted for in accordance with ASC Topic 842.

Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimated amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company uses the fair value framework under FASB’s guidance, and it requires the categorization of assets and liabilities into three levels based upon the assumptions used to measure the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, would generally require significant management judgment. The three levels for categorizing assets and liabilities under the fair value measurement requirements are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1: Fair value measurement of the asset or liability using observable inputs such as quoted prices in active markets for identical assets or liabilities.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2: Fair value measurement of the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3: Fair value measurement of the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability.</td></tr> </table>

Business Combination The Company applies the provisions of ASC Topic 805, Business Combinations (“ASC 805”) in the accounting for acquisitions of businesses. ASC 805 requires the Company to use the acquisition method of accounting by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed and measured at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the aforementioned amounts. Acquisition-related expenses were expensed as incurred and recorded in selling, general and administrative expenses in the consolidated carve-out statements of operations.

<p id="xdx_843_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zLrGgRbBdYGh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Recent Accounting Pronouncements Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (ASC 326)” This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to certain financial assets. The Company adopted ASC 326 on January 1, 2023, and estimated expected credit losses based on an aging schedule and provisioned approximately $15,000 credit loss for the year ended December 31, 2023. On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements.

15000 Reclassification Certain amounts in the consolidated carve-out financial statements and related notes have been reclassified to conform to the current year presentation. Such reclassifications do not impact the Company’s previously reported financial position or net loss. Below summarized reclassifications we made: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Due from related party of $2.3 million was previously included in the consolidated carve-out balance sheets in other assets as of December 31, 2022, and has been reclassified to due from related party in the consolidated carve-out balance sheets.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Cash usage in due from related party of $<span id="xdx_90B_ecustom--IncreaseDecreaseInOtherAssets_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z8iRcnbzRxH4" title="Increase decrease in other assets">926,000 was previously included in other assets in the consolidated statements of cash flow for the year ended December 31, 2022, and has been reclassified to due from related party in the consolidated carve-out statements of cash flows.</td></tr> </table> 2300000 926000 NOTE 4. DISAGGREGATION OF REVENUES The Company’s disaggregated revenues consist of the following for the years ended December 31, 2023 and 2022: SCHEDULE OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230101__20231231_zkrU8j7Nv8S8" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220101__20221231_zB3qh08CPYaf" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RetailGroceryMember_zChZcg0n8Uv6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Retail Grocery</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">47,243,163</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">25,867,061</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--FoodServiceRestaurantMember_zazC3ItzodW5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Food service/restaurant</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,440,245</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,126,709</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OnlineECommerceMember_zHlLBna3tVn4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Online/eCommerce</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,385</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">15,870</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zMU7zpA9dzXf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,689,793</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">29,009,640</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The Company’s disaggregated revenues consist of the following for the years ended December 31, 2023 and 2022: SCHEDULE OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230101__20231231_zkrU8j7Nv8S8" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220101__20221231_zB3qh08CPYaf" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RetailGroceryMember_zChZcg0n8Uv6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Retail Grocery</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">47,243,163</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">25,867,061</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--FoodServiceRestaurantMember_zazC3ItzodW5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Food service/restaurant</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,440,245</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,126,709</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OnlineECommerceMember_zHlLBna3tVn4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Online/eCommerce</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,385</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">15,870</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zMU7zpA9dzXf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,689,793</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">29,009,640</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

47243163

25867061

8440245

3126709

6385

15870

55689793

29009640

NOTE 5. ACCOUNTS RECEIVABLE Accounts receivable is mainly related to COOP billing from each of the HCWC entities. HCWC bills its vendors for advertising vendors’ products in our sales channels. Advertising revenue is included in sales revenue in the consolidated carve-out statement of operations. The Company recorded advertising revenue of approximately $249,000 and $94,000 for the years ended December 31, 2023 and 2022, respectively. The Company’s accounts receivable totaled approximately $128,000 and $55,000 at December 31, 2023 and December 31, 2022, respectively.

249000 94000

128000

55000

NOTE 6. INVENTORIES Inventories are measured at the lower of cost and net realizable value using the average cost method. If the cost of the inventories exceeds their market value, adjustments are recorded to write down excess inventory to its net realizable value. The Company recorded the write down of inventories amounting to approximately $2,472,000 and $1,500,000 for the years ended December 31, 2023 and 2022, respectively. The Company’s inventories consist primarily of merchandise available for resale.

2472000

1500000

NOTE 7. ACQUISITION Mother Earth’s Storehouse On February 9, 2022, the Company through its wholly owned subsidiary, Healthy Choice Markets 3, LLC, entered into an Asset Purchase Agreement with Mother Earth’s Storehouse Inc. (“HCM3”) and its shareholders. Pursuant to the Purchase Agreement, HCM3 acquired certain assets and assumed certain liabilities related to Mother Earth’s grocery stores in Kingston and Saugerties, New York. The Company intends to continue to operate the grocery stores under their existing name. The cash purchase price under the Asset Purchase Agreement was $<span id="xdx_90C_eus-gaap--PaymentsToAcquireBusinessesGross_c20220209__20220209__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_ze1Z9UEhqWsf" title="Cash purchase price">4,472,500, with an additional $<span id="xdx_90D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20220209__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zfnq4qvKEwIj" title="Inventory">677,500 paid for inventory at closing. In addition, the Company assumed a lease obligation for the Kingston, NY store and entered into an employment agreement with the store manager. <p id="xdx_89D_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MotherEarthsStorehouseIncMember_z5hH0HdPPIx7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 82%; text-align: left; padding-bottom: 2.5pt">Cash consideration paid</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--PaymentsToAcquireBusinessesGross_c20220209__20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zoGWB1MhFUn" style="border-bottom: Black 2.5pt double; width: 14%; text-align: right" title="Cash consideration paid">5,150,000</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zM3AOT7ItFr4" style="text-align: right" title="Inventory">805,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Property, plant, and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zXrgY1I2Sq71" style="text-align: right" title="Property, plant, and equipment">1,278,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zPqJLfxuJlke" style="text-align: right" title="Intangible assets">1,609,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Right of use asset - operating lease</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zko2wRmx5cJ5" style="text-align: right" title="Right of use asset - operating lease">1,797,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zUXh6e2YxbW8" style="text-align: right" title="Other liabilities">(283,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zgLdxQuVT0M" style="text-align: right" title="Operating lease liability">(1,797,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--Goodwill_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zNHrAm8rmUZ" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill">1,741,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zYgnrmZP6MAj" style="border-bottom: Black 2.5pt double; text-align: right" title="Net assets acquired">5,150,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zDSDRVEsnB42" title="Useful lives (years)">8 years)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_z9DBrgAgfuml" style="text-align: right" title="Trade Names (8 years)">513,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Customer Relationships (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zVI4rK0JHplb" title="Useful lives (years)">6 years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_ziAGvoQZy5L1" style="text-align: right" title="Customer Relationships (6 years)">683,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Non-Compete Agreement (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zHfOGeJVV6yh" title="Useful lives (years)">5 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zxG7L84Qga9k" style="border-bottom: Black 1pt solid; text-align: right" title="Non-Compete Agreement (5 years)">413,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zzJaCOIFFhya" style="border-bottom: Black 2.5pt double; text-align: right" title="Total intangible assets">1,609,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The acquisition is structured as asset purchase in a business combination, and goodwill is tax-deductible, and amortizable over <span id="xdx_908_ecustom--BusinessAcquisitionGoodwillTaxDeductibleAmountAmortizationPeriod_dtY_c20220209__20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_z0kt71f4vkjd" title="Amortization period for goodwill for tax purposes (years)">15 years for tax purposes. The results of operations of Mother’s Earth have been included in the consolidated carve-out statements of operations as of the effective date of operations. Revenue and net income for Year ended December 31, 2022 were $<span id="xdx_904_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pn5n6_c20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zcRtEG5d835h" title="Revenue">11.9 million and $0.30 million, respectively. Acquisition-related expenses are expensed as incurred, and are recorded in selling, general and administrative expenses in the consolidated carve-out statements of operations and were $<span id="xdx_90F_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_z3gqLFxWD8Th" title="Selling, general and administrative expenses">157,000 for the year ended December 31, 2022. They primarily related to legal and other professional fees. Green’s Natural Foods On October 14, 2022, the Company through its wholly owned subsidiary, Healthy Choice Markets IV, LLC, entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Dean’s Natural Food Market of Shrewsbury, Inc., a New Jersey corporation, Green’s Natural Foods, Inc., a Delaware corporation, Dean’s Natural Food Market of Chester, LLC, a New Jersey limited liability company, Dean’s Natural Food Market of Basking Ridge, LLC, a New Jersey limited liability company, and Dean’s Natural Food Market, Inc., a New Jersey corporation (collectively, the “Sellers”), and shareholders of the Sellers. Pursuant to the Purchase Agreement, the Company acquired certain assets and assumed certain liabilities of an organic and natural health food and vitamin chain with eight store locations in New York and northern and central New Jersey (the “Stores”). The cash purchase price under the Asset Purchase Agreement was $<span id="xdx_90F_eus-gaap--PaymentsToAcquireBusinessesGross_c20221014__20221014__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z78nWa8CUgAg" title="Cash purchase price">5,142,000, with an additional $<span id="xdx_904_eus-gaap--NotesPayableToBankNoncurrent_iI_c20221014__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zSdKZpAxfDu4" title="Promissory note">3,000,000 seller financing in the form of a promissory note. In addition, the seller is entitled to a contingent earn-out based on a certain revenue threshold within the one-year period of the closing. The Company recorded $<span id="xdx_907_eus-gaap--BusinessCombinationConsiderationTransferred1_c20221014__20221014__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zeBc6e791T7j" title="Contingent consideration">1,108,000 of contingent consideration based on the estimated financial performance for the one year following closing. The contingent consideration was discounted at an interest rate of <span id="xdx_90F_ecustom--WeightedAverageDiscountedInterestRate_iI_pid_dp_c20221014__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zmaSYPrPtnxh" title="Contingent consideration discount rate">3.8%, which represents the Company’s weighted average discount rate. Contingent consideration related to the acquisition is recorded at fair value (level 3) with changes in fair value recorded in other expense (income), net. <p id="xdx_897_eus-gaap--AssetAcquisitionContingentConsiderationTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--GreensNaturalFoodsIncMember_zyn4EGMlRVx8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the change in fair value of contingent consideration from acquisition date to December 31, 2023: SCHEDULE OF ASSET ACQUISITION CONTINGENT CONSIDERATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B3_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--BusinessAcquisitionAxis_custom--GreenSNaturalFoodsMember_zBO1LteNxwp8" style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Fair Market Value - Level 3</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_438_c20221014__20221231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iS_z9YQOlxV3Ndd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%">Balance as of October 14, 2022</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,108,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_zjXoghrEiuPj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Remeasurement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(333,100</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_43D_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iS_z9jXxHJl18Tg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance as of December 31, 2022</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">774,900</td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iS_zqM4RmQX9nmh" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Beginning balance </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">774,900</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_zBNz7nf3rdWd" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Remeasurement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(774,900</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_430_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iE_zGYgwiiJI1nj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance as of December 31, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_433_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iE_zT9gaiDig24b" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_897_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z3mt2he9EBr4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 82%; text-align: left">Cash consideration paid</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--PaymentsToAcquireBusinessesGross_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zNb3FnXcA70d" style="width: 14%; text-align: right" title="Cash consideration paid">5,142,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Promissory note</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--NotesPayableToBankNoncurrent_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zv7FGs5DOgAe" style="text-align: right" title="Promissory note">3,000,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Contingent consideration issued to Green’s Natural seller</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferred1_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--SellersMember_za8dI9lULFcc" style="border-bottom: Black 1pt solid; text-align: right" title="Contingent consideration issued to Green's Natural seller">1,108,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total Purchase Consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--BusinessCombinationConsiderationTransferred1_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zfFoJiEb5Kf3" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Purchase Consideration">9,250,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zBUQ6Kdm4Z7b" style="text-align: right" title="Inventory">1,642,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z3PYT6RCsQ1g" style="text-align: right" title="Property, plant, and equipment">1,478,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z87gfoUF2C55" style="text-align: right" title="Intangible assets">3,251,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of use asset - Operating lease</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zgO8mb7VPmy" style="text-align: right" title="Right of use asset - operating lease">6,427,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zLlf4oXtYqoi" style="text-align: right" title="Other liabilities">(211,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zZXc6KzJp3Xb" style="text-align: right" title="Operating lease liability">(6,427,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--Goodwill_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zPcgfzjoeg05" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill">3,090,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z54iNhPblIA3" style="border-bottom: Black 2.5pt double; text-align: right" title="Net assets acquired">9,250,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zHeZGBJUQBE7" title="Useful lives (years)">8 years)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z06XwY0b2occ" style="text-align: right" title="Trade Names (8 years)">1,133,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Customer Relationships (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zytHd7YKEDca" title="Useful lives (years)">6 years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zGD666EpTbsi" style="text-align: right" title="Customer Relationships (6 years)">1,103,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Non-Compete Agreement (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zl6wqusjsz12" title="Useful lives (years)">5 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zHW2wpZ9qPZ3" style="border-bottom: Black 1pt solid; text-align: right" title="Non-Compete Agreement (5 years)">1,015,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zt2dVg0mIjr3" style="border-bottom: Black 2.5pt double; text-align: right" title="Total intangible assets">3,251,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The acquisition is structured as asset purchase in a business combination, and goodwill is tax-deductible, and amortizable over <span id="xdx_908_ecustom--BusinessAcquisitionGoodwillTaxDeductibleAmountAmortizationPeriod_dtY_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z65Jcje0M6B" title="Amortization period for goodwill for tax purposes (years)">15 years for tax purpose. Revenue and net income for year ended December 31, 2022 were $6.3 million and $0.05 million, respectively, from the date of acquisition through December 31, 2022. Acquisition-related expenses of $<span id="xdx_906_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zS8AtMJWkJck" title="Selling, general and administrative expenses">906,000 were expensed as incurred and recorded in selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2022. The expenses primarily related to legal and other professional fees. Ellwood Thompson’s On October 1, 2023, the Company through its wholly owned subsidiary, Healthy Choice Markets V, LLC, entered into an Asset Purchase Agreement with (i) ET Holding, Inc., d/b/a Ellwood Thompson’s Local Market, a Virginia corporation, (ii) Ellwood Thompson’s Natural Market, L.C., a Virginia limited liability company, and (iii) Richard T. Hood, an individual resident of the Commonwealth of Virginia. Pursuant to the Purchase Agreement, the Company acquired certain assets and assumed certain liabilities related to Ellwood Thompson’s grocery stores in Richmond, Virginia. The Company intends to continue to operate the grocery stores under their existing name. The purchase price under the Asset Purchase Agreement was $<span id="xdx_90E_eus-gaap--PaymentsToAcquireBusinessesGross_c20231001__20231001__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zAm66gGnk8C7" title="Cash purchase price">750,000 and a promissory note, provided to the seller, of $<span id="xdx_90A_ecustom--PurchaseOfPromissoryNote_c20231001__20231001__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_znZBt1EDEBg8" title="Purchase of promissory note">750,000 with a fair value of $<span id="xdx_906_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireeFairValue1_c20231001__20231001__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zUrZR6nxDc5" title="Fair value">718,000. The Company expensed the discount associated with the promissory note and recognized interest expense of approximately $<span id="xdx_90E_eus-gaap--InterestExpenseOther_c20230101__20231231__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zsUlpRPuzd2i" title="Interest expense">32,000 during the year ended December 31, 2023. In addition, the Company entered into a new lease agreement with the landlord and entered into an employment agreement with the store manager. <p id="xdx_898_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zThA2SEsuAl3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">October 1, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: left">Cash consideration paid</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PaymentsToAcquireBusinessesGross_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zBfK1bCI14ff" style="width: 14%; text-align: right" title="Cash consideration paid">750,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Promissory note</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--NotesPayableToBankNoncurrent_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z3CWng5quJnh" style="border-bottom: Black 1pt solid; text-align: right" title="Promissory note">718,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total Purchase Consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferred1_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zFJRF8tcIWa3" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Purchase Consideration">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zI3UF2juy0a7" style="text-align: right" title="Inventory">851,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z13Otg2QDwyg" style="text-align: right" title="Intangible assets">291,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of use asset - Operating lease</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zQG39sxl9Jgi" style="text-align: right" title="Right of use asset - operating lease">1,325,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zegmQ7Ak0KTg" style="text-align: right" title="Other liabilities">(31,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zaHNUXgeyZyh" style="text-align: right" title="Operating lease liability">(1,325,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--Goodwill_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zHlecOuQwrwb" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill">357,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zxpaMkCjff1" style="border-bottom: Black 2.5pt double; text-align: right" title="Net assets acquired">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231001__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zMxxpFcDOZ57" title="Useful lives (years)">8 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20231001__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zVEa28RmkBX" style="border-bottom: Black 1pt solid; text-align: right" title="Trade Names (8 years)">291,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zRbxClPlqW3l" style="border-bottom: Black 2.5pt double; text-align: right" title="Total intangible assets">291,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The acquisition is structured as an asset purchase in a business combination, and goodwill is tax-deductible, and amortizable over <span id="xdx_907_ecustom--BusinessAcquisitionGoodwillTaxDeductibleAmountAmortizationPeriod_dtY_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zVXuQlG1bMO5" title="Amortization period for goodwill for tax purposes (years)">15 years for tax purposes. Revenue and net loss for year ended December 31, 2023 were $3.1 million and $0.3 million, respectively, from the date of acquisition through December 31, 2023. Acquisition-related expenses of $<span id="xdx_909_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20230101__20231231__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingGeneralAndAdministrativeExpensesMember_zmcj8scyAtHj" title="Selling, general and administrative expenses">131,000 were expensed as incurred and recorded in selling, general and administrative expenses in the consolidated carve-out statements of operations for the year ended December 31, 2023. The expenses primarily related to legal and other professional fees. Revenue and Earnings <p id="xdx_896_eus-gaap--BusinessAcquisitionProFormaInformationTextBlock_ztXhfCMUejV6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following unaudited pro forma summary presents consolidated information of the Company, including Mother Earth’s Storehouse, Green’s Natural Foods, and Ellwood Thompson’s, as if the business combinations had occurred on January 1, 2022, the earliest period presented herein: SCHEDULE OF UNAUDITED PROFORMA INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20230101__20231231__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseAndGreensNaturalFoodsAndEllwoodThompsonMember_zeqJKP1YPwR1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseAndGreensNaturalFoodsAndEllwoodThompsonMember_zP6ArEqD0KBa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--BusinessAcquisitionsProFormaRevenue_zakR9Jo0GbKj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">65,262,166</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">68,529,035</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_zxIkkm8Gmq91" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,119,851</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(276,797</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_zXRbAYf586a6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Adjusted EBITDA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,115,188</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(482,477</td><td style="text-align: left">)</td></tr> </table> The pro forma financial information includes adjustments that are directly attributable to the business combinations and are factually supportable. The pro forma adjustments include incremental amortization of intangible and remove non-recurring transaction costs directly associated with the acquisitions, such as legal and other professional service fees. The proforma data gives effects to actual operating results prior to the acquisition. These proforma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisitions occurred as of the beginning of each period presented or that may be obtained in future periods. For the year ended December 31, 2022, the pro forma financial information excludes $<span id="xdx_90E_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember__us-gaap--NonrecurringAdjustmentAxis__us-gaap--AcquisitionRelatedCostsMember_zFng8RTb5ytf" title="Aquisition related cost">1,063,000 of non-recurring acquisition-related expenses. For the year ended December 31, 2023, the pro forma financial information excludes $<span id="xdx_908_eus-gaap--BusinessCombinationAcquisitionRelatedCosts_c20230101__20231231__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember__us-gaap--NonrecurringAdjustmentAxis__us-gaap--AcquisitionRelatedCostsMember_zzREbDwal03g" title="Aquisition related cost">131,000 of non-recurring acquisition-related expenses.

4472500

677500

<p id="xdx_89D_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--MotherEarthsStorehouseIncMember_z5hH0HdPPIx7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 82%; text-align: left; padding-bottom: 2.5pt">Cash consideration paid</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--PaymentsToAcquireBusinessesGross_c20220209__20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zoGWB1MhFUn" style="border-bottom: Black 2.5pt double; width: 14%; text-align: right" title="Cash consideration paid">5,150,000</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zM3AOT7ItFr4" style="text-align: right" title="Inventory">805,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Property, plant, and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zXrgY1I2Sq71" style="text-align: right" title="Property, plant, and equipment">1,278,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zPqJLfxuJlke" style="text-align: right" title="Intangible assets">1,609,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Right of use asset - operating lease</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zko2wRmx5cJ5" style="text-align: right" title="Right of use asset - operating lease">1,797,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zUXh6e2YxbW8" style="text-align: right" title="Other liabilities">(283,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zgLdxQuVT0M" style="text-align: right" title="Operating lease liability">(1,797,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--Goodwill_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zNHrAm8rmUZ" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill">1,741,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zYgnrmZP6MAj" style="border-bottom: Black 2.5pt double; text-align: right" title="Net assets acquired">5,150,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zDSDRVEsnB42" title="Useful lives (years)">8 years)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_z9DBrgAgfuml" style="text-align: right" title="Trade Names (8 years)">513,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Customer Relationships (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zVI4rK0JHplb" title="Useful lives (years)">6 years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_ziAGvoQZy5L1" style="text-align: right" title="Customer Relationships (6 years)">683,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Non-Compete Agreement (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zHfOGeJVV6yh" title="Useful lives (years)">5 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zxG7L84Qga9k" style="border-bottom: Black 1pt solid; text-align: right" title="Non-Compete Agreement (5 years)">413,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20220209__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseIncMember_zzJaCOIFFhya" style="border-bottom: Black 2.5pt double; text-align: right" title="Total intangible assets">1,609,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

5150000

805000

1278000

1609000

1797000

283000

-1797000

1741000

5150000

P8Y

513000

P6Y

683000

P5Y

413000

1609000

P15Y

11900000

300000

157000

5142000

3000000

1108000

0.038

<p id="xdx_897_eus-gaap--AssetAcquisitionContingentConsiderationTableTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--GreensNaturalFoodsIncMember_zyn4EGMlRVx8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the change in fair value of contingent consideration from acquisition date to December 31, 2023: SCHEDULE OF ASSET ACQUISITION CONTINGENT CONSIDERATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B3_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--BusinessAcquisitionAxis_custom--GreenSNaturalFoodsMember_zBO1LteNxwp8" style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Fair Market Value - Level 3</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_438_c20221014__20221231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iS_z9YQOlxV3Ndd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%">Balance as of October 14, 2022</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,108,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_zjXoghrEiuPj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Remeasurement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(333,100</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_43D_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iS_z9jXxHJl18Tg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance as of December 31, 2022</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">774,900</td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iS_zqM4RmQX9nmh" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Beginning balance </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">774,900</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_zBNz7nf3rdWd" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Remeasurement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(774,900</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_430_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iE_zGYgwiiJI1nj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance as of December 31, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_433_c20230101__20231231_eus-gaap--BusinessCombinationContingentConsiderationLiabilityCurrent_iE_zT9gaiDig24b" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1108000

-333100

774900

-774900

<p id="xdx_897_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z3mt2he9EBr4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 82%; text-align: left">Cash consideration paid</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--PaymentsToAcquireBusinessesGross_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zNb3FnXcA70d" style="width: 14%; text-align: right" title="Cash consideration paid">5,142,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Promissory note</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--NotesPayableToBankNoncurrent_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zv7FGs5DOgAe" style="text-align: right" title="Promissory note">3,000,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Contingent consideration issued to Green’s Natural seller</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferred1_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--SellersMember_za8dI9lULFcc" style="border-bottom: Black 1pt solid; text-align: right" title="Contingent consideration issued to Green's Natural seller">1,108,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total Purchase Consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--BusinessCombinationConsiderationTransferred1_c20221014__20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zfFoJiEb5Kf3" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Purchase Consideration">9,250,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zBUQ6Kdm4Z7b" style="text-align: right" title="Inventory">1,642,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z3PYT6RCsQ1g" style="text-align: right" title="Property, plant, and equipment">1,478,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z87gfoUF2C55" style="text-align: right" title="Intangible assets">3,251,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of use asset - Operating lease</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zgO8mb7VPmy" style="text-align: right" title="Right of use asset - operating lease">6,427,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zLlf4oXtYqoi" style="text-align: right" title="Other liabilities">(211,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zZXc6KzJp3Xb" style="text-align: right" title="Operating lease liability">(6,427,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--Goodwill_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zPcgfzjoeg05" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill">3,090,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z54iNhPblIA3" style="border-bottom: Black 2.5pt double; text-align: right" title="Net assets acquired">9,250,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zHeZGBJUQBE7" title="Useful lives (years)">8 years)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_z06XwY0b2occ" style="text-align: right" title="Trade Names (8 years)">1,133,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Customer Relationships (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zytHd7YKEDca" title="Useful lives (years)">6 years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zGD666EpTbsi" style="text-align: right" title="Customer Relationships (6 years)">1,103,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Non-Compete Agreement (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zl6wqusjsz12" title="Useful lives (years)">5 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--NoncompeteAgreementsMember__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zHW2wpZ9qPZ3" style="border-bottom: Black 1pt solid; text-align: right" title="Non-Compete Agreement (5 years)">1,015,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20221014__us-gaap--BusinessAcquisitionAxis__custom--GreenSNaturalFoodsMember_zt2dVg0mIjr3" style="border-bottom: Black 2.5pt double; text-align: right" title="Total intangible assets">3,251,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

5142000

3000000

1108000

9250000

1642000

1478000

3251000

6427000

211000

-6427000

3090000

9250000

P8Y

1133000

P6Y

1103000

P5Y

1015000

3251000

P15Y

6300000

50000.00

906000

750000

718000

32000

<p id="xdx_898_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zThA2SEsuAl3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the purchase price allocation based on fair values of the net assets acquired at the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">October 1, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Purchase Consideration</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: left">Cash consideration paid</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PaymentsToAcquireBusinessesGross_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zBfK1bCI14ff" style="width: 14%; text-align: right" title="Cash consideration paid">750,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Promissory note</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--NotesPayableToBankNoncurrent_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z3CWng5quJnh" style="border-bottom: Black 1pt solid; text-align: right" title="Promissory note">718,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total Purchase Consideration</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferred1_c20231001__20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zFJRF8tcIWa3" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Purchase Consideration">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-weight: bold">Purchase price allocation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Inventory</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zI3UF2juy0a7" style="text-align: right" title="Inventory">851,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_z13Otg2QDwyg" style="text-align: right" title="Intangible assets">291,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of use asset - Operating lease</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAsset_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zQG39sxl9Jgi" style="text-align: right" title="Right of use asset - operating lease">1,325,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Other liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNoncurrentLiabilitiesOther_iNI_di_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zegmQ7Ak0KTg" style="text-align: right" title="Other liabilities">(31,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseLiability_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zaHNUXgeyZyh" style="text-align: right" title="Operating lease liability">(1,325,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--Goodwill_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zHlecOuQwrwb" style="border-bottom: Black 1pt solid; text-align: right" title="Goodwill">357,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zxpaMkCjff1" style="border-bottom: Black 2.5pt double; text-align: right" title="Net assets acquired">1,468,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Finite-lived intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Trade Names (<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBVUkNIQVNFIFBSSUNFIEFMTE9DQVRJT04gKFBhcmVudGhldGljYWwpIChEZXRhaWxzKQA_" id="xdx_90C_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231001__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zMxxpFcDOZ57" title="Useful lives (years)">8 years)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20231001__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zVEa28RmkBX" style="border-bottom: Black 1pt solid; text-align: right" title="Trade Names (8 years)">291,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total intangible assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_c20231001__us-gaap--BusinessAcquisitionAxis__custom--EllwoodThompsonMember_zRbxClPlqW3l" style="border-bottom: Black 2.5pt double; text-align: right" title="Total intangible assets">291,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

750000

718000

1468000

851000

291000

1325000

31000

-1325000

357000

1468000

P8Y

291000

P15Y

-3100000

-300000

131000

<p id="xdx_896_eus-gaap--BusinessAcquisitionProFormaInformationTextBlock_ztXhfCMUejV6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following unaudited pro forma summary presents consolidated information of the Company, including Mother Earth’s Storehouse, Green’s Natural Foods, and Ellwood Thompson’s, as if the business combinations had occurred on January 1, 2022, the earliest period presented herein: SCHEDULE OF UNAUDITED PROFORMA INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20230101__20231231__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseAndGreensNaturalFoodsAndEllwoodThompsonMember_zeqJKP1YPwR1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20220101__20221231__us-gaap--BusinessAcquisitionAxis__custom--MotherEarthStorehouseAndGreensNaturalFoodsAndEllwoodThompsonMember_zP6ArEqD0KBa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--BusinessAcquisitionsProFormaRevenue_zakR9Jo0GbKj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Sales</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">65,262,166</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">68,529,035</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_zxIkkm8Gmq91" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,119,851</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(276,797</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_zXRbAYf586a6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Adjusted EBITDA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,115,188</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(482,477</td><td style="text-align: left">)</td></tr> </table>

65262166

68529035

-10119851

-276797

-3115188

-482477

1063000

131000

<p id="xdx_80A_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zJsYbXgOPYv9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 8. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consist of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20231231_zjqYSnROdbEl" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20221231_z1h1oBLCODUd" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DisplaysMember_zOBCNPiUEGZf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Displays</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zuBJkdIti4gk" style="vertical-align: bottom; background-color: White"> <td>Building</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zaKF9EQwvqz1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">505,436</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">469,338</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zhzfUfuAb1w3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,925,385</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,910,719</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z97Km317Jr54" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Computer hardware & equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141,682</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">114,525</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OtherMachineryAndEquipmentMember_zZKkhHTiitr2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">680,718</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">579,547</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz9Wk_zl8gXj3sZ1U7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Property, plant and equipment gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,140,367</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,961,275</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz9Wk_zacvp4LNRKPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,463,728</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(925,428</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz9Wk_zyKkihzcWsI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total property, plant, and equipment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,676,639</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,035,847</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company incurred approximately $539,000 and $280,000 of depreciation expense for the years ended December 31, 2023 and 2022, respectively. Depreciation expense was included in operating expenses on the consolidated carve-out statements of operations.

Property, plant, and equipment consist of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20231231_zjqYSnROdbEl" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20221231_z1h1oBLCODUd" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--DisplaysMember_zOBCNPiUEGZf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Displays</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">312,146</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zuBJkdIti4gk" style="vertical-align: bottom; background-color: White"> <td>Building</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zaKF9EQwvqz1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">505,436</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">469,338</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zhzfUfuAb1w3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,925,385</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,910,719</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z97Km317Jr54" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Computer hardware & equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141,682</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">114,525</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OtherMachineryAndEquipmentMember_zZKkhHTiitr2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">680,718</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">579,547</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz9Wk_zl8gXj3sZ1U7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Property, plant and equipment gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,140,367</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,961,275</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz9Wk_zacvp4LNRKPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,463,728</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(925,428</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz9Wk_zyKkihzcWsI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total property, plant, and equipment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,676,639</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,035,847</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

312146

575000

505436

469338

1925385

1910719

141682

114525

680718

579547

4140367

3961275

1463728

925428

2676639

3035847

539000

280000

<p id="xdx_806_eus-gaap--GoodwillAndIntangibleAssetsDisclosureTextBlock_zUCLc8gpVii2" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 9. GOODWILL The Company tests goodwill for impairment annually on September 30 or more frequently if there are indicators that the carrying amount of the goodwill exceeds its estimated fair value. Impairment Charge in 2023 The consolidated financial statements for the year ended December 31, 2023, reflect a $6.1 million goodwill impairment charge. This impairment was recognized as a result of the following factors: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Recurring losses</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Reduction in same store revenue</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Highly competitive industry</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Certain operational costs that have impacted our expectations such that future growth and profitability is lower than previous estimates</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Negative working capital experienced by the Company in the fourth quarter of 2023</td></tr> </table> The above noted elements lead management to evaluate the goodwill at the HCMC level and, since this goodwill pertained entirely to the segment being spun-off (the Company), the carrying value of goodwill presented in these carve-out financial statements has been impacted. The Company concluded that the above identified factors were the triggering events as of December 31, 2023, which indicated that the Company’s goodwill might be impaired. Because the qualitative test indicated that the Company’s goodwill was determined to be impaired, a second phase of the goodwill impairment test (“Step 2”) was performed. Under Step 2, the fair value of the Company was estimated for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of the goodwill was then compared to the recorded goodwill to determine the amount of the impairment. The Company evaluated the fair value of its equity through the use of Guideline Public Company Method and Discounted Cash Flow Method. These two methods first calculated market value of invested capital, then the Company applied 50% of weighting to each method to derive the weight equity value. The Guideline Public Company Method calculated the Company’s equity using public markets’ relevant comparable set with market multiples that are applicable to the company. The Discounted Cash Flow Method discounted projected free cashflows of the Company at a computed weighted average cost of capital of 16.5% as the discount rate. The Discounted Cash Flow Method requires the use of significant estimates and assumptions to calculate projected future cash flow, weighted average cost of capital, and future economic and market conditions. The Company based the forecasts on its knowledge of the industry, recent performance and expected future performance, and other assumptions management believes to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. As a result of the impairment test, the entire $6.1 million carrying value of goodwill was recognized as a non-cash impairment charge in 2023. There was no impairment of goodwill during the year ended December 31, 2022. The following table summarizes the changes in goodwill for the years ended December 31, 2023 and 2022: SCHEDULE OF GOODWILL <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--Goodwill_iS_c20230101__20231231_zGfdhCyLCoIl" style="width: 14%; text-align: right" title="Balance">5,747,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--Goodwill_iS_c20220101__20221231_zgdiBHRD5vre" style="width: 14%; text-align: right" title="Balance">916,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Acquisitions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--GoodwillAcquisitions_c20230101__20231231_zPpL6YedJgec" style="text-align: right" title="Acquisitions">357,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--GoodwillAcquisitions_c20220101__20221231_zCLigvzWgze4" style="text-align: right" title="Acquisitions">4,831,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Impairment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,104,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--GoodwillImpairmentLoss_c20220101__20221231_zim2MDSs4BEf" style="border-bottom: Black 1pt solid; text-align: right" title="Impairment">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--Goodwill_iE_c20230101__20231231_zHAAbm2oHfMj" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--Goodwill_iE_c20220101__20221231_zcBYoXUnhcP6" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance">5,747,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

6100000

The following table summarizes the changes in goodwill for the years ended December 31, 2023 and 2022: SCHEDULE OF GOODWILL <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--Goodwill_iS_c20230101__20231231_zGfdhCyLCoIl" style="width: 14%; text-align: right" title="Balance">5,747,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--Goodwill_iS_c20220101__20221231_zgdiBHRD5vre" style="width: 14%; text-align: right" title="Balance">916,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Acquisitions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--GoodwillAcquisitions_c20230101__20231231_zPpL6YedJgec" style="text-align: right" title="Acquisitions">357,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--GoodwillAcquisitions_c20220101__20221231_zCLigvzWgze4" style="text-align: right" title="Acquisitions">4,831,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Impairment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,104,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--GoodwillImpairmentLoss_c20220101__20221231_zim2MDSs4BEf" style="border-bottom: Black 1pt solid; text-align: right" title="Impairment">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--Goodwill_iE_c20230101__20231231_zHAAbm2oHfMj" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--Goodwill_iE_c20220101__20221231_zcBYoXUnhcP6" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance">5,747,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

5747000

916000

357000 4831000

6104000

5747000

NOTE 10. INTANGIBLE ASSETS, NET <p id="xdx_89A_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zU5u13KmP1nj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">At December 31, 2023 and, 2022, intangible assets consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 21%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: center"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zhBznktUgIC9" title="Useful lives (years)">8-<span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zfTOEnTOKF1f" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zgdMWkkPkKE2" style="width: 15%; text-align: right" title="Gross Carrying amount">2,860,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_z3NnrmJni8ag" style="width: 15%; text-align: right" title="Accumulated Amortization">(1,035,443</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zFNv5wgrDnN1" style="width: 15%; text-align: right" title="Net Carrying Amount">1,824,557</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_z5p45PO59NX2" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zRX92YoZedz2" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_z01HD1Ldy73j" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_z3f7dIFhdFe5" style="text-align: right" title="Accumulated Amortization">(1,330,972</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zGSG2AFY3GK5" style="text-align: right" title="Net Carrying Amount">1,338,028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zsxyLPS8QQH7" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zK7Dx4GNF5Zd" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zHCxjCcMsce6" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zeFjX0FYfzr9" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(586,066</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zRqDmaHI49u7" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">1,015,934</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231_zsh2iJdGHfV6" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">7,131,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231_zXoyb6mMJMyc" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(2,952,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231_zxmJw0MPcell" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">4,178,519</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 21%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: center"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zPuH8Gw1MCrk" title="Useful lives (years)">8-<span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zjgBL8y4LUk4" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_z1rcjm78w5Yk" style="width: 15%; text-align: right" title="Gross Carrying amount">2,569,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zjrQP4KIInE8" style="width: 15%; text-align: right" title="Accumulated Amortization">(725,724</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zomVo88OFL4j" style="width: 15%; text-align: right" title="Net Carrying Amount">1,843,276</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_z7ovGj9LmUGf" title="Useful lives (years)">4-<span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zAnptPicMgYd" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zIPO06BmRRQk" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zHKBJoKMk3c7" style="text-align: right" title="Accumulated Amortization">(1,033,306</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zH83hXZxJaQ2" style="text-align: right" title="Net Carrying Amount">1,635,694</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zilqdVSBdy52" title="Useful lives (years)">4-<span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zt367WFKXChc" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zAKbDUn3orkk" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zYQB5ThPrT61" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(300,466</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z8Viq4xm8ZNe" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">1,301,534</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231_zN5H4JsNJm57" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">6,840,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231_z1XIL9nMiIL1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(2,059,496</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231_zOStvqsC9L5f" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">4,780,504</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense was approximately $893,000 and $723,000 for the years ended December 31, 2023 and 2022, respectively. Amortization expense was included in selling, general and administrative expenses on the consolidated carve-out statements of operations. <p id="xdx_89A_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zAZ0dBWZn171" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Future annual estimated amortization expense is as follows: SCHEDULE OF FUTURE ANNUAL ESTIMATED AMORTIZATION EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; font-weight: bold">For the years ending December 31,</td><td> </td> <td colspan="2" id="xdx_495_20231231_zbGlF5zv6Mtd" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzFlF_z73tlV0YzBRi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: left">2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">920,266</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzFlF_zx4P4Q2Gh486" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">914,766</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzFlF_zFrNYCtoOVp9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">837,730</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzFlF_zZpKCtwAfNgc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">698,925</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_maFLIANzFlF_z4Q5lQdJFash" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,486</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_maFLIANzFlF_zMpOxw6sjqW2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">417,346</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzFlF_zCzhRfKav1g1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,178,519</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

<p id="xdx_89A_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zU5u13KmP1nj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">At December 31, 2023 and, 2022, intangible assets consist of the following: SCHEDULE OF INTANGIBLE ASSETS, NET <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 21%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: center"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zhBznktUgIC9" title="Useful lives (years)">8-<span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zfTOEnTOKF1f" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zgdMWkkPkKE2" style="width: 15%; text-align: right" title="Gross Carrying amount">2,860,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_z3NnrmJni8ag" style="width: 15%; text-align: right" title="Accumulated Amortization">(1,035,443</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zFNv5wgrDnN1" style="width: 15%; text-align: right" title="Net Carrying Amount">1,824,557</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_z5p45PO59NX2" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zRX92YoZedz2" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_z01HD1Ldy73j" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_z3f7dIFhdFe5" style="text-align: right" title="Accumulated Amortization">(1,330,972</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zGSG2AFY3GK5" style="text-align: right" title="Net Carrying Amount">1,338,028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_909_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zsxyLPS8QQH7" title="Useful lives (years)">4-<span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zK7Dx4GNF5Zd" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zHCxjCcMsce6" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zeFjX0FYfzr9" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(586,066</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zRqDmaHI49u7" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">1,015,934</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231_zsh2iJdGHfV6" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">7,131,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231_zXoyb6mMJMyc" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(2,952,481</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20231231_zxmJw0MPcell" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">4,178,519</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Lives (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 21%; text-align: left">Trade names</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: center"><span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MinimumMember_zPuH8Gw1MCrk" title="Useful lives (years)">8-<span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember__srt--RangeAxis__srt--MaximumMember_zjgBL8y4LUk4" title="Useful lives (years)">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_z1rcjm78w5Yk" style="width: 15%; text-align: right" title="Gross Carrying amount">2,569,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zjrQP4KIInE8" style="width: 15%; text-align: right" title="Accumulated Amortization">(725,724</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TradeNamesMember_zomVo88OFL4j" style="width: 15%; text-align: right" title="Net Carrying Amount">1,843,276</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer relationships</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MinimumMember_z7ovGj9LmUGf" title="Useful lives (years)">4-<span id="xdx_90F_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember__srt--RangeAxis__srt--MaximumMember_zAnptPicMgYd" title="Useful lives (years)">6 years</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zIPO06BmRRQk" style="text-align: right" title="Gross Carrying amount">2,669,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zHKBJoKMk3c7" style="text-align: right" title="Accumulated Amortization">(1,033,306</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--CustomerRelationshipMember_zH83hXZxJaQ2" style="text-align: right" title="Net Carrying Amount">1,635,694</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Non-compete</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: center; padding-bottom: 1.5pt"><span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MinimumMember_zilqdVSBdy52" title="Useful lives (years)">4-<span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember__srt--RangeAxis__srt--MaximumMember_zt367WFKXChc" title="Useful lives (years)">5 years</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zAKbDUn3orkk" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying amount">1,602,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_zYQB5ThPrT61" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">(300,466</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--NonCompeteMember_z8Viq4xm8ZNe" style="border-bottom: Black 1pt solid; text-align: right" title="Net Carrying Amount">1,301,534</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231_zN5H4JsNJm57" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Gross Carrying Amount">6,840,000</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231_z1XIL9nMiIL1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Accumulated Amortization">(2,059,496</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20221231_zOStvqsC9L5f" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Net Carrying Amount">4,780,504</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

P8Y

P10Y

2860000

-1035443

1824557

P4Y

P6Y

2669000

-1330972

1338028

P4Y

P5Y

1602000

-586066

1015934

7131000

-2952481

4178519

P8Y

P10Y

2569000

-725724

1843276

P4Y

P6Y

2669000

-1033306

1635694

P4Y

P5Y

1602000

-300466

1301534

6840000

-2059496

4780504

893000

723000

<p id="xdx_89A_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zAZ0dBWZn171" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Future annual estimated amortization expense is as follows: SCHEDULE OF FUTURE ANNUAL ESTIMATED AMORTIZATION EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; font-weight: bold">For the years ending December 31,</td><td> </td> <td colspan="2" id="xdx_495_20231231_zbGlF5zv6Mtd" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzFlF_z73tlV0YzBRi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: left">2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">920,266</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzFlF_zx4P4Q2Gh486" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">914,766</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzFlF_zFrNYCtoOVp9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">837,730</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzFlF_zZpKCtwAfNgc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">698,925</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_maFLIANzFlF_z4Q5lQdJFash" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,486</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_maFLIANzFlF_zMpOxw6sjqW2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">417,346</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzFlF_zCzhRfKav1g1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,178,519</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

920266

914766

837730

698925

389486

417346

4178519

<p id="xdx_801_eus-gaap--AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock_z4FyHuadbgXl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 11. ACCOUNTS PAYABLE AND ACCRUED EXPENSES <p id="xdx_892_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zVXJdSwP2pk6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">At December 31, 2023 and 2022, accounts payable and accrued expenses consisted of: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20231231_ze32hysOJlX1" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20221231_zQxMyZTugrPg" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableTradeCurrentAndNoncurrent_iI_maAPAALzbb0_zGSycf05uqNd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Trade creditors</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,406,299</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,118,757</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iI_maAPAALzbb0_zzy7bEC8uF25" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Accrued expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">514,112</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">370,787</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent_iTI_mtAPAALzbb0_z6lPOq0ajIfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,920,411</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,489,544</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<p id="xdx_892_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zVXJdSwP2pk6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">At December 31, 2023 and 2022, accounts payable and accrued expenses consisted of: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20231231_ze32hysOJlX1" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20221231_zQxMyZTugrPg" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableTradeCurrentAndNoncurrent_iI_maAPAALzbb0_zGSycf05uqNd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Trade creditors</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,406,299</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,118,757</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iI_maAPAALzbb0_zzy7bEC8uF25" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Accrued expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">514,112</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">370,787</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent_iTI_mtAPAALzbb0_z6lPOq0ajIfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,920,411</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,489,544</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4406299

3118757

514112

370787

4920411

3489544

NOTE 12. CONTRACT LIABILITIES The Company’s contract liabilities consist of customer deposits, gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products when customers redeem balances or terms expire through breakage. <p id="xdx_898_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zZgnUVgSwVq4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">A summary of the contract liabilities activity at December 31, 2023 and 2022 is presented below: SCHEDULE OF CONTRACT LIABILITIES ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20231231_zow05rrq7Yvg" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220101__20221231_zIATp7Ce7io5" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_z75CWK7baQL7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Beginning balance as January 1,</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">198,606</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">18,514</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--ContractWithCustomerLiabilityIssued_zdf4Zgb5gYSa" style="vertical-align: bottom; background-color: White"> <td>Issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">891,060</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">859,383</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--ContractWithCustomerLiabilityRedeemed_iN_di_zJI8TAC05Y11" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Redeemed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(812,694</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(623,348</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_ecustom--ContractWithCustomerLiabilityBreakageRecognized_zc3BbcZTwpga" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Breakage recognized</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,459</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,943</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_zEPXQNditbb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">207,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">198,606</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<p id="xdx_898_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zZgnUVgSwVq4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">A summary of the contract liabilities activity at December 31, 2023 and 2022 is presented below: SCHEDULE OF CONTRACT LIABILITIES ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20231231_zow05rrq7Yvg" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220101__20221231_zIATp7Ce7io5" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_z75CWK7baQL7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Beginning balance as January 1,</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">198,606</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">18,514</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--ContractWithCustomerLiabilityIssued_zdf4Zgb5gYSa" style="vertical-align: bottom; background-color: White"> <td>Issued</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">891,060</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">859,383</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--ContractWithCustomerLiabilityRedeemed_iN_di_zJI8TAC05Y11" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Redeemed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(812,694</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(623,348</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_ecustom--ContractWithCustomerLiabilityBreakageRecognized_zc3BbcZTwpga" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Breakage recognized</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,459</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(55,943</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_zEPXQNditbb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">207,513</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">198,606</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

198606

18514

891060 859383 812694 623348 -69459 -55943

207513

198606

NOTE 13. DEBT The following table provides a breakdown of the Company’s debt as of December 31, 2023 and 2022: SCHEDULE OF DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20231231_zd2xAeytYpIe" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20221231_z85jt4KtuXoh" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--DebtInstrumentCarryingAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNotesMember_zEbMNNe0gfE4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Promissory note</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,106,508</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,913,788</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherLongTermDebt_iI_hus-gaap--DebtInstrumentAxis__custom--OtherDebtMember_zKFtjMpLuvWb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Other debt</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">815</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_zrCeLoX1Kt1l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total debt</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,106,508</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,914,603</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iNI_di_zp8Al9KKAbI" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Current portion of long-term debt</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(702,701</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(536,542</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LongTermDebtNoncurrent_iI_zz4wiCPxr7s7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,403,807</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,378,061</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Promissory Note In connection with the Green’s Natural Foods acquisition, on October 14, 2022, the Company issued a secured promissory note (the “Greens Note”) in the principal amount of $3,000,000 as a portion of the purchase price. The Greens Note has a five-year term, an interest rate of 6.0% per annum and is secured by the assets of the Green’s Natural Foods. The outstanding balance was approximately $2,378,000 and $2,914,000 as of December 31, 2023 and 2022, respectively. The Company incurred approximately $160,000 and $30,000 interest expense for the years ended December 31, 2023 and 2022, respectively. In connection with the Ellwood Thompson’s acquisition, on October 1, 2023, the Company issued a secured promissory note (the “Ellwood Note”) in the principal amount of $750,000 and fair value of $718,000 as a portion of the purchase price. The difference of $32,000 between the carrying amount of $750,000 and fair value of $718,000 was expensed as non-cash interest expense. The Ellwood Note has a five-year term, an interest rate of 6.0% per annum. The outstanding balance of the Ellwood Note was approximately $728,000 as of December 31, 2023. Interest expense was approximately $39,000 for the year ended December 31, 2023. The Company may, at its option, at any time or from time to time prepay the outstanding principal amount or any accrued but unpaid interest, in each case in whole or in part, without penalty or premium, provided that any such prepayment of any outstanding amount of principal shall be accompanied by the payment of all accrued but unpaid interest on the amount of principal being prepaid, plus any costs and fees incurred. The following table summarizes the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIERFQlQgUkVQQVlNRU5UIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentTerm_dtY_c20230101__20231231_zxqBzSiZgE7c" title="Debt instrument repayment term">5-year repayment schedule: SCHEDULE OF DEBT REPAYMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">For the years ending December 31,</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20231231_zqoOQiSwBa41"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zpXFoIda2QWe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; font-weight: bold; text-align: left">2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">702,701</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zSLynVQu5bvd" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">746,042</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zOOTuc2RJOd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">792,056</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zU9DVn3eWVUh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">2027</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">724,333</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zvvODotLNXI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">2028</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">141,376</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DebtInstrumentCarryingAmount_iI_zgGgPKAMfIj8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,106,508</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

The following table provides a breakdown of the Company’s debt as of December 31, 2023 and 2022: SCHEDULE OF DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20231231_zd2xAeytYpIe" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20221231_z85jt4KtuXoh" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--DebtInstrumentCarryingAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNotesMember_zEbMNNe0gfE4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Promissory note</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,106,508</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,913,788</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherLongTermDebt_iI_hus-gaap--DebtInstrumentAxis__custom--OtherDebtMember_zKFtjMpLuvWb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Other debt</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">815</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_zrCeLoX1Kt1l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total debt</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,106,508</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,914,603</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iNI_di_zp8Al9KKAbI" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Current portion of long-term debt</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(702,701</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(536,542</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LongTermDebtNoncurrent_iI_zz4wiCPxr7s7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term debt</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,403,807</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,378,061</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

3106508

2913788

815

3106508

2914603

702701

536542

2403807

2378061

3000000

0.060

2378000

2914000

160000

30000

750000

718000

The difference of $32,000 between the carrying amount of $750,000 and fair value of $718,000 was expensed as non-cash interest expense.

0.060

728000

39000

The following table summarizes the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIERFQlQgUkVQQVlNRU5UIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentTerm_dtY_c20230101__20231231_zxqBzSiZgE7c" title="Debt instrument repayment term">5-year repayment schedule: SCHEDULE OF DEBT REPAYMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">For the years ending December 31,</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20231231_zqoOQiSwBa41"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zpXFoIda2QWe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; font-weight: bold; text-align: left">2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">702,701</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zSLynVQu5bvd" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">746,042</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zOOTuc2RJOd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">792,056</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zU9DVn3eWVUh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">2027</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">724,333</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zvvODotLNXI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">2028</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">141,376</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DebtInstrumentCarryingAmount_iI_zgGgPKAMfIj8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,106,508</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

P5Y

702701

746042

792056

724333

141376

3106508

NOTE 14. LEASES The Company has various lease agreements with terms up to 20 years. All the leases are classified as operating leases. <p id="xdx_892_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z5KutXl9rQV6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Maturity of lease liabilities under our non-cancellable operating leases as of December 31, 2023 were as follows: SCHEDULE OF MATURITY OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; font-weight: bold">Payments due by period</td><td> </td> <td colspan="2" id="xdx_499_20231231_zHuf17MifOa4" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_zTXT5qoUlqgg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: left">2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,116,834</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_z9ErEyQrTDp3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,859,278</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_z3MlJwJjFn96" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,520,001</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_zLsNyXZmRMpi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,535,080</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zrWCBiy1Aeua" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">834,710</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zLbmqLZHwbG6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,363,363</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zUoJ7fvXYYpe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total undiscounted operating lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,229,266</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zc7qldgSfSl4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,019,260</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseLiability_iI_zyyIZkST9Fdl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Present value of operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,210,006</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_892_ecustom--ScheduleOfCompanyOperatingLeasesTableTextBlock_z81uVPN05F4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20231231_zh9WJlb3Ba85" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20221231_zkiYwacWhYw8" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zgEQd7ttz8Aj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Right of use asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,412,562</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">10,604,935</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_iI_maOLLzSG7_zbjV2Q0TKcqg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability, current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,748,824</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,228,852</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_maOLLzSG7_zCQFX8nS9Msh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liability, net of current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,461,182</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,041,504</td><td style="text-align: left"> </td></tr> </table> 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. <p id="xdx_894_ecustom--LesseeOperatingLeaseLiabilityLeaseTermTableTextBlock_zrOY1ZqzomRa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides a summary of other information related to the leases for the years ended December 31, 2023 and 2022: SCHEDULE OF OPERATING LEASE TERM <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Other Information</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 30, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted-average remaining lease term for operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left">Weighted-average discount rate for operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20231231_zlR9FAoIiZ04" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.98</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20221231_z05zQrI2dggk" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.83</td><td style="width: 1%; text-align: left">%</td></tr> </table> Rent expense for the years ended December 31, 2023 and 2022 was approximately $3,400,000 and $1,400,000, respectively. It is included in selling, general and administrative expenses in the accompanying consolidated carve-out statements of operations. The components of lease expenses for the years ended December 31, 2023 and 2022 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230101__20231231_zWp6BpL6l5Pg" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220101__20221231_zkJJMU7BYpj8" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseCost_maLCz15M_zXzkO52hhlFl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,263,413</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">759,207</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--VariableLeaseCost_maLCz15M_zdLcch40uEF7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">865,095</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">355,924</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ShortTermLeaseCost_maLCz15M_zgYYoZfe4c72" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">306,790</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">284,013</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LeaseCost_iT_mtLCz15M_zhOEkMzvNKd4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total rent expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,435,298</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,399,144</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 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.

P20Y

<p id="xdx_892_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z5KutXl9rQV6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Maturity of lease liabilities under our non-cancellable operating leases as of December 31, 2023 were as follows: SCHEDULE OF MATURITY OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; font-weight: bold">Payments due by period</td><td> </td> <td colspan="2" id="xdx_499_20231231_zHuf17MifOa4" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_zTXT5qoUlqgg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: left">2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">3,116,834</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_z9ErEyQrTDp3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,859,278</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_z3MlJwJjFn96" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,520,001</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_zLsNyXZmRMpi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,535,080</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zrWCBiy1Aeua" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">834,710</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zLbmqLZHwbG6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,363,363</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zUoJ7fvXYYpe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total undiscounted operating lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,229,266</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zc7qldgSfSl4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,019,260</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseLiability_iI_zyyIZkST9Fdl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Present value of operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">11,210,006</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

3116834

2859278

2520001

1535080

834710

1363363

12229266

1019260

11210006

<p id="xdx_892_ecustom--ScheduleOfCompanyOperatingLeasesTableTextBlock_z81uVPN05F4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20231231_zh9WJlb3Ba85" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20221231_zkiYwacWhYw8" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zgEQd7ttz8Aj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Right of use asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,412,562</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">10,604,935</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_iI_maOLLzSG7_zbjV2Q0TKcqg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability, current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,748,824</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,228,852</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_maOLLzSG7_zCQFX8nS9Msh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease liability, net of current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,461,182</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,041,504</td><td style="text-align: left"> </td></tr> </table>

11412562

10604935

2748824

2228852

8461182

8041504

2570000

1043000

<p id="xdx_894_ecustom--LesseeOperatingLeaseLiabilityLeaseTermTableTextBlock_zrOY1ZqzomRa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides a summary of other information related to the leases for the years ended December 31, 2023 and 2022: SCHEDULE OF OPERATING LEASE TERM <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; font-weight: bold">Other Information</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 30, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted-average remaining lease term for operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left">Weighted-average discount rate for operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20231231_zlR9FAoIiZ04" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.98</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20221231_z05zQrI2dggk" style="width: 14%; text-align: right" title="Weighted-average discount rate for operating leases">3.83</td><td style="width: 1%; text-align: left">%</td></tr> </table>

P5Y

P6Y

0.0398

0.0383

3400000

1400000

The components of lease expenses for the years ended December 31, 2023 and 2022 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230101__20231231_zWp6BpL6l5Pg" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220101__20221231_zkJJMU7BYpj8" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseCost_maLCz15M_zXzkO52hhlFl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,263,413</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">759,207</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--VariableLeaseCost_maLCz15M_zdLcch40uEF7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">865,095</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">355,924</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ShortTermLeaseCost_maLCz15M_zgYYoZfe4c72" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">306,790</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">284,013</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LeaseCost_iT_mtLCz15M_zhOEkMzvNKd4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total rent expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,435,298</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,399,144</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2263413

759207

865095

355924

306790

284013

3435298

1399144

2438000

953000

<p id="xdx_80E_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zypm2UF38sNa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 15. RELATED PARTY TRANSACTIONS The Company has not historically operated as a separate, stand-alone company and, accordingly has had various relationships with HCMC whereby HCMC provided services to the Company as noted below. Related party transactions include allocation of general corporate expenses and advances from parent. Allocation of General Corporate Expenses HCMC provides human resources, accounting, payroll processing, legal and other managerial services to the Company. The accompanying consolidated carve-out financial statements include allocations of these expenses. Management adopted a proportional cost allocation method to allocate HCMC expenses to the Company. The allocation method calculates the appropriate share of overhead costs to the Company based on management’s estimate that the sum of management time and resources spent managing the Company is approximately equal to the amount of time and resources spent managing HCMC and its subsidiaries. As a result, 50% of HCMC overhead on a weighted average basis was allocated to the Company based on the fact that management spent equal amount of time to manage HCMC and the Company. The Company believes the allocation methodology used is reasonable and has been consistently applied, and results in an appropriate allocation of costs incurred. However, these allocations may not be indicative of the cost had the Company been a stand-alone entity or of future services. HCMC allocated $2.5 million and $3.4 million for the years ended December 31, 2023 and 2022, respectively. Such amounts will not be cash settled and are included in the Net Parent’s Investment. Investment by Parent The Company received approximately $<span id="xdx_904_eus-gaap--RelatedPartyTaxExpenseDueToAffiliatesCurrent_pn5n6_c20230101__20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zsYLKw091aS7" title="Funds from parent company">3.4 million and $<span id="xdx_906_eus-gaap--RelatedPartyTaxExpenseDueToAffiliatesCurrent_pn5n6_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zOu2alEQlcyl" title="Funds from parent company">13.8 million funding from HCMC to cover acquisition and any shortfalls on operating cash requirements for the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2023, the net operating expenses of $<span id="xdx_907_eus-gaap--OperatingExpenses_pn5n6_c20230101__20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zGKTWKMTU3qh" title="Net operating expense">2.5 million incurred by HCMC on behalf of the Company, $<span id="xdx_90E_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_pn5n6_c20230101__20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--EllwoodThompsonAcquisitionMember_zouyRFQCvRUa" title="Due from affiliates">0.8 million cash advance attributable to the Ellwood Thompson’ acquisition and $<span id="xdx_90A_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_pn5n6_c20230101__20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zB2LBNCJy49g" title="Loan payment">0.1 million HCMC loan payment on behalf of Green’s Natural Foods were included in the Net Parent’s Investment. For the year ended December 31, 2022, $<span id="xdx_909_eus-gaap--OperatingExpenses_pn5n6_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zkdNH4q2EJh8" title="Net operating expense">2.8 million net operating expenses incurred by HCMC on behalf of the Company, and $<span id="xdx_904_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_pn5n6_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HealthierChoicesManagementCorpMember_zuqKjaFN2WAi" title="Due from affiliates">11.0 million cash advance attributable to the Mother Earth’s Storehouse acquisition and Green’s Natural Foods acquisition for year ended December 31, 2022 were included in the Net Parent’s Investment. Intercompany Receivable and Payable There is no intercompany agreement between the Company and HCMC. Management has determined those intercompany receivables and payables will be settled within twelve months after the balance sheet date. As a result, the Company’s intercompany balances are reflected as “due to” or “due from” accounts in the consolidated carve-out balance sheets. The Company had a net receivable balance of $3.8 million and $2.3 million from HCMC as of December 31, 2023 and 2022, respectively.

2500000

3400000

13800000

2500000

800000

100000

2800000

11000000.0

3800000

2300000

<p id="xdx_801_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zKVfbMO2RaXl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 16. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time the Company may be involved in various claims and legal actions arising in the ordinary course of our business. With respect to legal costs, we record such costs as incurred.

Note 17. INCOME TAX The Company did not have a provision for income taxes (current or deferred tax expense) for tax years ended December 31, 2023 and 2022. The following is a reconciliation of the expected tax expense (benefit) at the U.S. statutory rate 21% to the actual tax expense (benefit) reflected in the accompanying consolidated carve-out statements of operations: <p id="xdx_893_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zkdNeyESrLw9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF PROVISION FOR INCOME TAX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_495_20230101__20231231_zLZ7ByJSaXP6" style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_49C_20220101__20221231_zPDR0ajwkNzj" style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maITEBzsB3_zGdTYPokf9ah" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Provision/(benefit) at statutory rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(2,085,850</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">(697,766</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maITEBzsB3_zvvDLpQIv5Qi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State tax provision/(benefit) net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(557,568</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(165,565</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_maITEBzsB3_zvIZAO4lLGhb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,496,515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">929,294</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--EffectiveIncomeTaxRateReconciliationTrueUpAndDeferredAdjustmentAmount_maITEBzsB3_zwipzySdRsb4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">True-Up & Deferred Adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(73,814</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_maITEBzsB3_zHm5mFyaiDOi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,273</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(19,027</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationOtherAdjustments_maITEBzsB3_zfIl9SOXEXbf" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">209,444</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(46,936</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxExpenseBenefit_iT_mtITEBzsB3_zbXUWmaFlxlc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Income tax provision/(benefit)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_899_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zcottZ77JIPk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">As of December 31, 2023 and 2022, the Company’s deferred tax assets and liabilities consisted of the effects of temporary differences attributable to the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20231231_z5Z4Aat58aO6" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20221231_zTmyBWs8TNok" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesNetAbstract_iB_zFR60Sx8Nj5f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets (liabilities):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iI_maDTAGzRtf_zSw5wx5aniY4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 64%; text-align: left">NOL & AMT credit carryforward</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,449,401</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,586,187</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsCharitableContributionCarryforwards_iI_maDTAGzRtf_z7nJBfh7jY01" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Charitable contribution</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,586</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--DeferredTaxAssetsFixedAssets_iI_maDTAGzRtf_zHs4D4eu2q04" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Fixed assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(21,083</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,414</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsGoodwillAndIntangibleAssets_iI_maDTAGzRtf_zFY1WDv9CMm9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,995,960</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">434,547</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--DeferredTaxAssetsUniformCapitalizationAdjustments_iI_maDTAGzRtf_zi7lT6D9GEqf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">UNICAP 263a Adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">53,284</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetsLiabilitiesLeaseAccounting_iI_maDTAGzRtf_z0TF2Att1FIj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">ASC 842 - Lease Accounting</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">65,172</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">44,485</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsGross_iTI_maDTLzLPZ_mtDTAGzRtf_z9tz4jTWPBF9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total net deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,546,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049,805</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTLzLPZ_z620u3ZGTX9b" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,546,320</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,049,805</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTLzLPZ_zRS8EeaJxtg8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax assets</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the positive and negative evidence available, management has determined that a valuation allowance is required at December 31, 2023 and 2022 to reduce the deferred tax assets to amounts that are more likely than not to be realized. The Company’s valuation increased by approximately $2,497,000 and $929,000 for the tax years ended 2023 and 2022, respectively. Should the factors underlying management’s analysis change, future valuation adjustments to the Company’s net deferred tax assets may be necessary. At December 31, 2023, the Company had U.S. federal and state post-2017 net operating loss carryforwards (“NOLs”) of $10.3 million and $10.5 million, respectively. Tax Cuts and Jobs Act (TCJA) allows NOLs incurred in tax years beginning in 2018 to be carried forward indefinitely subject to 80% of taxable income under Internal Revenue Code Section 172. Florida net operating losses generated in taxable years beginning after December 31, 2017, are carried forward indefinitely until used and never expire. New York and New Jersey net operating losses expire after twenty years. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. Among other provisions, the IRA includes a 15% corporate alternative minimum tax on applicable corporations and 1% excise tax on stock repurchases made after December 31, 2022. The IRA is not expected to have an impact on the consolidated financial statements. The Company had no uncertain tax positions as of December 31, 2023, and 2022. The Company files a federal income tax return and income tax returns in various state tax jurisdictions and the Company is generally no longer subject to examinations by federal and state tax authorities for years before 2020.

0.21

<p id="xdx_893_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zkdNeyESrLw9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF PROVISION FOR INCOME TAX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_495_20230101__20231231_zLZ7ByJSaXP6" style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_49C_20220101__20221231_zPDR0ajwkNzj" style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maITEBzsB3_zGdTYPokf9ah" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Provision/(benefit) at statutory rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(2,085,850</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">(697,766</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maITEBzsB3_zvvDLpQIv5Qi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State tax provision/(benefit) net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(557,568</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(165,565</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_maITEBzsB3_zvIZAO4lLGhb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,496,515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">929,294</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--EffectiveIncomeTaxRateReconciliationTrueUpAndDeferredAdjustmentAmount_maITEBzsB3_zwipzySdRsb4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">True-Up & Deferred Adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(73,814</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_maITEBzsB3_zHm5mFyaiDOi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in tax rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,273</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(19,027</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationOtherAdjustments_maITEBzsB3_zfIl9SOXEXbf" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">209,444</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(46,936</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxExpenseBenefit_iT_mtITEBzsB3_zbXUWmaFlxlc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Income tax provision/(benefit)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

-2085850

-697766

-557568

-165565

2496515

929294

-73814

11273

-19027

209444

-46936

<p id="xdx_899_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zcottZ77JIPk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">As of December 31, 2023 and 2022, the Company’s deferred tax assets and liabilities consisted of the effects of temporary differences attributable to the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20231231_z5Z4Aat58aO6" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20221231_zTmyBWs8TNok" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesNetAbstract_iB_zFR60Sx8Nj5f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets (liabilities):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwards_iI_maDTAGzRtf_zSw5wx5aniY4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 64%; text-align: left">NOL & AMT credit carryforward</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,449,401</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,586,187</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsCharitableContributionCarryforwards_iI_maDTAGzRtf_z7nJBfh7jY01" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Charitable contribution</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,586</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--DeferredTaxAssetsFixedAssets_iI_maDTAGzRtf_zHs4D4eu2q04" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Fixed assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(21,083</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,414</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsGoodwillAndIntangibleAssets_iI_maDTAGzRtf_zFY1WDv9CMm9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,995,960</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">434,547</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--DeferredTaxAssetsUniformCapitalizationAdjustments_iI_maDTAGzRtf_zi7lT6D9GEqf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">UNICAP 263a Adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">53,284</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetsLiabilitiesLeaseAccounting_iI_maDTAGzRtf_z0TF2Att1FIj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">ASC 842 - Lease Accounting</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">65,172</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">44,485</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsGross_iTI_maDTLzLPZ_mtDTAGzRtf_z9tz4jTWPBF9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total net deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,546,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,049,805</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTLzLPZ_z620u3ZGTX9b" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,546,320</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,049,805</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTLzLPZ_zRS8EeaJxtg8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax assets</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

2449401

1586187

3586

-21083 -15414

1995960

434547

53284 65172 44485

4546320

2049805

4546320

2049805

2497000

929000

10300000

10500000

0.80 0.15 0.01

NOTE 18. SUBSEQUENT EVENTS In connection with the spin off, on January 18, 2024, the Company entered into Securities Purchase Agreement with institutional investors whereby the Company issued a total of approximately $<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn5n6_c20240118__20240118__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredPromissoryNoteMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zLyn5o3uzLIe" title="Aggregate subscription price">1.9 million in unsecured promissory notes (the “Notes). The notes were issued at a <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20240118__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredPromissoryNoteMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zVN2GIMpGCRj" title="Original issue discount">10% original issue discount and accrue interest at a rate of <span id="xdx_908_ecustom--AccruredInterestRate_iI_pid_dp_uPure_c20240118__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredPromissoryNoteMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zE0PDN6tAxMf" title="Accrued interest rate">10% per annum. All principal and accrued interest on the Notes shall be due and payable upon the earlier of (1) the closing of the Potential initial public offering (“IPO”), (2) the one-year anniversary of issuance or (3) the time at which the balance is due and payable upon an event of default. The investors agree to acquire $<span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20240118__20240118__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z5YTveLikeNd" title="Aggregate subscription price">1,700,000 of Class A common stock in the IPO, and the Company will issue <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240118__20240118__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zLJznhY17iik" title="Number of shares issued">188,889 shares of Class A common stock (assuming an IPO offering price of $<span id="xdx_907_eus-gaap--SharePrice_iI_c20240118__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z5IzXZvmf0Qa" title="Share price">10 per share) to institutional investors upon IPO. On February 13, 2024, the Company filed Amendment No. 2 to its registration statement on Form S-1 with the Commission with respect to the Spin-Off. On February 13, 2024, the Company filed Amendment No. 3 to its registration statement on Form S-1 with the Commission with respect to the IPO. On February 9, 2024, in order to maximize profitability and improve operation efficiency, management made the decision to close the Saugerties store. The building where the store is located is owned by the Company, and it is currently for sale. At the time of these consolidated carve-out financial statements are issued, no sales agreement has been signed. On April 8, 2024, HCWC and the institutional investors entered into an amendment to the January 18, 2024, agreement whereby HCWC agrees to issue warrants in lieu of the Class A common stock shares. The warrants will be issued in the same aggregate amount as the Class A common stock, $<span id="xdx_907_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20240408__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--ClassOfWarrantOrRightAxis__custom--BridgeWarrantSharesMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zLryY6Y0xLya" title="Warrant purchase">1,888,889. The parties also agreed to terminate any existing obligations of the institutional investors to acquire HCWC Class A common stock as part of the IPO transaction. Further, the parties agreed to extend the date to August 1, 2024 as the date when the HCWC spin-off transaction must be completed in order to require the institutional investors to acquire the Series A Convertible Preferred Stock. On May 16, 2024, the Company secured a $5,000,000 revolving credit facility from a long-standing, key investor, to continue its expansion plans and fund any working capital needs.

1900000

0.10

1700000

188889

1888889

5000000

215764

131905

1589447

92492

12797

2042405

2012142

221033

6036104

14565

6271702

10326249

1749399

470923

128794

1661788

307467

31381

27376

4377128

57193

4374315

4431508

8808636

30002

5212491

-3136818

-588062

1517613

10326249

7673837

23979762

4538358

14014132

242098 779136

2893381

9186494

1629352

4955330

1319764

4207019

85611

256660

3034727

9419009

-141346

-232515

1232

7793

-53090

-66240

-54322

-74033

-195668

-306548

30002

-496097

-2922234

5212491

1824162

-91965

-214584

-306548

30000

459803

-90380

399423

30002

-588062

-3136818

5212491

1517613

-306548

256660

54973

-232448

-47795

-975

12056

135154

-29308

-39701

-1891

23215

-18519

257362

521826

-521826

20534

-20534

-284998

500762

215764

7793

NOTE 1 – MANAGEMENT’S RESPONSIBILITY The accompanying condensed combined financial statements for the nine-months ended September 30, 2022, have been prepared by the Company’s management without an audit or review by an independent registered public accounting firm. The Company has made estimates and judgments affecting the amounts reported in the Company’s unaudited condensed combined financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented.

NOTE 2 – ORGANIZATION Green’s Natural Foods, Inc., Dean’s Natural Food Market, Inc., Dean’s Natural Food Market of Shrewsbury, Inc., Dean’s Natural Food Market of Basking Ridge, LLC, Dean’s Natural Food Market of Chester, LLC, and Dean’s Natural Holdings, LLC (collectively the “Company”) operate organic and all-natural food grocery stores. The Company has eight grocery store locations in Mount Kisco, Eastchester, Briarcliff, and Somers, New York as well as Basking Ridge, Chester, Shrewsbury, and Ocean, New Jersey. On October 14, 2022, the Company’s assets were acquired by Healthy Choice Market IV, LLC, a wholly owned subsidiary of Healthier Choices Management Corp.

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Combination The accompanying unaudited condensed combined financial statement is prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying combined financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the period presented. The accompanying unaudited condensed combined financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering, as filed with the SEC on October 27, 2023. The interim results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any future periods. Use of Estimates The preparation of condensed combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2021 for private companies, and annual and interim periods thereafter, with early adoption permitted. The Company adopted ASU No. 2016-02 on January 1, 2022 using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. Adoption of this standard resulted in the recognition of operating lease right-of-use assets of $7.1 million and corresponding lease liabilities of $7.1 million on the condensed combined balance sheet as of January 1, 2022. The standard did not materially impact operating results or liquidity. Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers all short-term investment securities purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents include monies held by the Company’s credit card processors. The funds are held by the merchant credit card processors pending satisfaction of their hold requirements and expiration of charge backs/refunds circumstances. Revenue Recognition Revenues from product sales, net of promotional discounts, manufacturer coupons and rebates, return allowances, and sales and consumption taxes, are recorded when products are delivered, title passes to customers, and collection is likely to occur. Title is passed to customers at the point of sale for all retail purchases. Return allowances, which reduce revenue, are estimated using historical experience. Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivables are claims to consideration which are unconditional, meaning no performance obligations remain for the Company and only the passage of time is necessary before collection. Contract assets are distinguished from accounts receivable as performance obligations remain before claims to consideration become unconditional. Contract liabilities are recorded when customers transfer consideration in advance of delivery of products, which the Company records for all gift cards and loyalty reward programs. When one party to an arrangement performs before the other(s), the Company records an account receivable, contract asset, or contract liability. The majority of arrangements with customers contain one performance obligation to provide a distinct set of products. Most performance obligations are satisfied simultaneously as the Company exchanges products for customer payment. Exceptions include gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products at a future date. As gift cards are purchased and loyalty points earned, contract liabilities are recorded until the performance obligations are satisfied through delivery of products or breakage based on gift card and loyalty reward program term limits. Inventories Inventories are stated at average cost. If the cost of inventories exceeds their net realizable value, adjustments are recorded to write down excess inventory value to net realizable value. The Company’s inventories consist primarily of merchandise available for resale, such as fresh produce, perishable grocery items, and non-perishable consumable goods. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. Expenditures for maintenance and repairs and minor renewals are charged to expense; betterments and major renewals are capitalized. Leasehold improvements are amortized over the lesser of the lease terms or the assets’ useful lives. Upon retirement or sale of assets, the cost of the assets disposed of, and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to income. Property, plant and equipment is comprised of the following at September 30, 2022, and estimated useful lives of the related assets are as follows: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%" summary="xdx: Statement - Condensed Combined Carve-out Statements of Operations"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zOp4K7rlwE6c"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Years</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zT8csrNcutTj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Vehicles</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">46,256</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MinimumMember_zjGkCvbu5Scl" title="Building and improvements">5-<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MaximumMember_zm5i3PrKyune" title="Building and improvements">7</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zUnqXLRGnNxi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,988,570</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zW524IlaqP99" title="Leasehold improvements">15</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zLXC7JjwMgA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,732,154</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z8y5nJUgVZMc" title="Furniture and fixtures">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_zLnWKqYuyGo9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Office equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,708</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zyYRcxngCtCi" title="Property, plant and equipment, useful life">5-<span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_z4syJ13Req28" title="Office equipment">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_z5GbRfFBfRrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Machinery and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,227,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zXCT5HgUrHdj" title="Property, plant and equipment, useful life">5-<span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zydiUEnKvUi9" title="Property, plant and equipment, useful life">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzoYC_zQKMmIyEKyZf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,045,259</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzoYC_zve2VIB17iQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Accumulated depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,033,117</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzoYC_zSnw7VxNG3S8" style="vertical-align: bottom; background-color: White"> <td>Property, plant and equipment, net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,012,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table> Depreciation expense amounted to $85,611 and $256,660, respectively for the three and nine-month period ended September 30, 2022. Advertising Costs The Company expenses advertising costs as they are incurred. They are presented as a component of store operating expenses. Advertising costs were approximately $36,000 and $133,000, respectively for the three and nine-month period ended September 30, 2022. Retirement Plan The Company maintains two 401(k) plans. Under the terms of these plans, the employer may make up to 4% matching contributions. The plans follow the Safe Harbor Cash or Deferred Arrangement (CODA) in which a minimum contribution plan of <span id="xdx_90A_eus-gaap--DefinedContributionPlanEmployerMatchingContributionPercentOfMatch_pid_dp_uPure_c20220101__20220930__srt--RangeAxis__srt--MinimumMember_znKBXVQAJJa1" title="Minimum contribution plan, percentage">4% of salaries must be made by the Company each pay period. Presentation of Sales Tax The states of New York and New Jersey impose sales taxes on all of the Company’s sales to nonexempt customers. The Company collects sales taxes from customers and remits the amounts to the states. The Company’s accounting policy is to exclude the tax collected and remitted to the State from revenues and expenses with the exception of excise taxes paid on purchases.

Basis of Presentation and Principles of Combination The accompanying unaudited condensed combined financial statement is prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying combined financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the period presented. The accompanying unaudited condensed combined financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering, as filed with the SEC on October 27, 2023. The interim results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any future periods.

Use of Estimates The preparation of condensed combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2021 for private companies, and annual and interim periods thereafter, with early adoption permitted. The Company adopted ASU No. 2016-02 on January 1, 2022 using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. Adoption of this standard resulted in the recognition of operating lease right-of-use assets of $7.1 million and corresponding lease liabilities of $7.1 million on the condensed combined balance sheet as of January 1, 2022. The standard did not materially impact operating results or liquidity.

Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers all short-term investment securities purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents include monies held by the Company’s credit card processors. The funds are held by the merchant credit card processors pending satisfaction of their hold requirements and expiration of charge backs/refunds circumstances.

Revenue Recognition Revenues from product sales, net of promotional discounts, manufacturer coupons and rebates, return allowances, and sales and consumption taxes, are recorded when products are delivered, title passes to customers, and collection is likely to occur. Title is passed to customers at the point of sale for all retail purchases. Return allowances, which reduce revenue, are estimated using historical experience.

Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivables are claims to consideration which are unconditional, meaning no performance obligations remain for the Company and only the passage of time is necessary before collection. Contract assets are distinguished from accounts receivable as performance obligations remain before claims to consideration become unconditional. Contract liabilities are recorded when customers transfer consideration in advance of delivery of products, which the Company records for all gift cards and loyalty reward programs. When one party to an arrangement performs before the other(s), the Company records an account receivable, contract asset, or contract liability. The majority of arrangements with customers contain one performance obligation to provide a distinct set of products. Most performance obligations are satisfied simultaneously as the Company exchanges products for customer payment. Exceptions include gift cards and loyalty rewards, for which the Company has a performance obligation to deliver products at a future date. As gift cards are purchased and loyalty points earned, contract liabilities are recorded until the performance obligations are satisfied through delivery of products or breakage based on gift card and loyalty reward program term limits.

Inventories Inventories are stated at average cost. If the cost of inventories exceeds their net realizable value, adjustments are recorded to write down excess inventory value to net realizable value. The Company’s inventories consist primarily of merchandise available for resale, such as fresh produce, perishable grocery items, and non-perishable consumable goods.

Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. Expenditures for maintenance and repairs and minor renewals are charged to expense; betterments and major renewals are capitalized. Leasehold improvements are amortized over the lesser of the lease terms or the assets’ useful lives. Upon retirement or sale of assets, the cost of the assets disposed of, and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to income. Property, plant and equipment is comprised of the following at September 30, 2022, and estimated useful lives of the related assets are as follows: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%" summary="xdx: Statement - Condensed Combined Carve-out Statements of Operations"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zOp4K7rlwE6c"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Years</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zT8csrNcutTj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Vehicles</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">46,256</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MinimumMember_zjGkCvbu5Scl" title="Building and improvements">5-<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MaximumMember_zm5i3PrKyune" title="Building and improvements">7</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zUnqXLRGnNxi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,988,570</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zW524IlaqP99" title="Leasehold improvements">15</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zLXC7JjwMgA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,732,154</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z8y5nJUgVZMc" title="Furniture and fixtures">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_zLnWKqYuyGo9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Office equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,708</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zyYRcxngCtCi" title="Property, plant and equipment, useful life">5-<span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_z4syJ13Req28" title="Office equipment">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_z5GbRfFBfRrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Machinery and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,227,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zXCT5HgUrHdj" title="Property, plant and equipment, useful life">5-<span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zydiUEnKvUi9" title="Property, plant and equipment, useful life">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzoYC_zQKMmIyEKyZf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,045,259</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzoYC_zve2VIB17iQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Accumulated depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,033,117</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzoYC_zSnw7VxNG3S8" style="vertical-align: bottom; background-color: White"> <td>Property, plant and equipment, net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,012,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table> Depreciation expense amounted to $85,611 and $256,660, respectively for the three and nine-month period ended September 30, 2022.

Property, plant and equipment is comprised of the following at September 30, 2022, and estimated useful lives of the related assets are as follows: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%" summary="xdx: Statement - Condensed Combined Carve-out Statements of Operations"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zOp4K7rlwE6c"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Years</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zT8csrNcutTj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Vehicles</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">46,256</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MinimumMember_zjGkCvbu5Scl" title="Building and improvements">5-<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MaximumMember_zm5i3PrKyune" title="Building and improvements">7</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zUnqXLRGnNxi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,988,570</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zW524IlaqP99" title="Leasehold improvements">15</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zLXC7JjwMgA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Furniture and fixtures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,732,154</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_z8y5nJUgVZMc" title="Furniture and fixtures">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_zLnWKqYuyGo9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Office equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,708</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zyYRcxngCtCi" title="Property, plant and equipment, useful life">5-<span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_z4syJ13Req28" title="Office equipment">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_z5GbRfFBfRrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Machinery and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,227,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zXCT5HgUrHdj" title="Property, plant and equipment, useful life">5-<span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zydiUEnKvUi9" title="Property, plant and equipment, useful life">7</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzoYC_zQKMmIyEKyZf" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,045,259</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzoYC_zve2VIB17iQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Accumulated depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(4,033,117</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzoYC_zSnw7VxNG3S8" style="vertical-align: bottom; background-color: White"> <td>Property, plant and equipment, net</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,012,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table>

46256

P5Y

P7Y

1988570

P15Y

1732154

P7Y

50708

P5Y

P7Y

2227571

P5Y

P7Y

6045259

4033117

2012142

85611

256660

Advertising Costs The Company expenses advertising costs as they are incurred. They are presented as a component of store operating expenses. Advertising costs were approximately $36,000 and $133,000, respectively for the three and nine-month period ended September 30, 2022.

36000

133000

Retirement Plan The Company maintains two 401(k) plans. Under the terms of these plans, the employer may make up to 4% matching contributions. The plans follow the Safe Harbor Cash or Deferred Arrangement (CODA) in which a minimum contribution plan of <span id="xdx_90A_eus-gaap--DefinedContributionPlanEmployerMatchingContributionPercentOfMatch_pid_dp_uPure_c20220101__20220930__srt--RangeAxis__srt--MinimumMember_znKBXVQAJJa1" title="Minimum contribution plan, percentage">4% of salaries must be made by the Company each pay period.

0.04

Presentation of Sales Tax The states of New York and New Jersey impose sales taxes on all of the Company’s sales to nonexempt customers. The Company collects sales taxes from customers and remits the amounts to the states. The Company’s accounting policy is to exclude the tax collected and remitted to the State from revenues and expenses with the exception of excise taxes paid on purchases.

NOTE 4 – CONCENTRATION OF CREDIT AND MARKET RISK The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. As of the nine-month period ended September 30, 2022, the Company did not have cash concentrated in any one financial institution which was in excess of Federal Deposit Insurance Corporation (FDIC) coverage of $250,000. The Company carries its accounts receivable at cost less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its receivables and establishes an allowance for doubtful accounts, based on a history of past write-offs, collections, and current credit conditions. Accounts are written off as uncollectible at the time management determines that collections are unlikely. Accounts receivables are uncollateralized. The Company has a concentration with two of its vendors, UNFI and Albert’s Organics, related to the purchase of inventory. Approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorOneMember_z6fDLaDI4qQ7" title="Concentration risk percentage">41% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorTwoMember_zI36dO7Xtwr3" title="Concentration risk percentage">54% of purchases respectively were made with these vendors during the nine months ended September 30, 2022. Accounts payable consist of balances due to vendors for inventory the Company sells in its stores as well as services rendered to the Company on or before the year-end which have not been paid as of September 30, 2022. At September 30, 2022, vendor Albert’s Organics represented <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorAlbertsOrganicsMember_zhQqV3kKJvM" title="Concentration risk, percentage">9% and vendor UNFI represented <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorMember_zu9qTQG3va39" title="Concentration risk, percentage">25% of accounts payable.

250000

0.41

0.54

0.09

0.25

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: SCHEDULE OF MATURITY OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Payments due by period</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zqcnD0zGc12k" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_zWtSnkLFQQLd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2022 (remaining three months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">432,127</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_ztvsfmJDKKV8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,774,056</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_zkjRj3PE4Z6c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,232,391</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_zhb0t7NEdFG6" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">982,606</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zB4DkDMv8u13" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">859,607</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zoqAGIcfzYyj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,296,758</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zkOkjDR37CZh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total undiscounted operating lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,577,545</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zlE7paVZBI67" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(541,441</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseLiability_iI_zHjHv7GVyG37" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Present value of operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,036,104</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20220930_z8DL9TcMOW3l" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zzMo6sa8qpc5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 72%; text-align: justify">Right of use asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 24%; text-align: right">6,036,104</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_iI_maOLLzSG7_zCIIJnGDtfv5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Operating lease liability, current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,661,788</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_maOLLzSG7_z3v2inVy2kXg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Operating lease liability, net of current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,374,315</td><td style="text-align: left"> </td></tr> </table> The following table provides a summary of other information related to the leases at September 30, 2022: SCHEDULE OF OPERATING LEASE TERM <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Other Information</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average remaining lease term for operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 76%; text-align: justify">Weighted-average discount rate for operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20220930_zZhJ0I0iDkce" style="width: 20%; text-align: right" title="Weighted-average discount rate for operating leases">1.30</td><td style="width: 1%; text-align: left">%</td></tr> </table> Rent expenses for three and nine months ended September 30, 2022 were approximately $0.5 million and $1.5 million, respectively. It is included in operating expenses in the accompanying condensed combined statement of operations. The components of lease expenses for the three and nine months ended September 30, 2022: SCHEDULE OF COMPONENTS OF LEASE EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20220701__20220930_zp8plqPRmYE9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Month Ended September 30, 2022</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20220101__20220930_zZVp7mst0rVg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine Month Ended September 30, 2022</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseCost_maLCz15M_zrimhufKMY0g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">322,629</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">964,753</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--VariableLeaseCost_maLCz15M_zaKqe0CGk5Tj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,633</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">267,301</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ShortTermLeaseCost_maLCz15M_zNdrtmI34LY1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Short-term lease cost</td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">89,455</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">267,496</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LeaseCost_iT_mtLCz15M_zfWAv9tUqlV1" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total rent expense</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">489,717</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,499,550</td><td style="text-align: left"> </td></tr> </table> 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.

Maturity of lease liabilities under our non-cancellable operating leases as of September 30, 2022 were as follows: SCHEDULE OF MATURITY OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Payments due by period</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zqcnD0zGc12k" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_zWtSnkLFQQLd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2022 (remaining three months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">432,127</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_ztvsfmJDKKV8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,774,056</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_zkjRj3PE4Z6c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,232,391</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_zhb0t7NEdFG6" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">982,606</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zB4DkDMv8u13" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">859,607</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zoqAGIcfzYyj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,296,758</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zkOkjDR37CZh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total undiscounted operating lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,577,545</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zlE7paVZBI67" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: Imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(541,441</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseLiability_iI_zHjHv7GVyG37" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Present value of operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,036,104</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

432127

1774056

1232391

982606

859607

1296758

6577545

541441

6036104

The following table summarizes the Company’s operating leases: SCHEDULE OF COMPANY’S OPERATING LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Balance Sheet Classification</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20220930_z8DL9TcMOW3l" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zzMo6sa8qpc5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 72%; text-align: justify">Right of use asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 24%; text-align: right">6,036,104</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityCurrent_iI_maOLLzSG7_zCIIJnGDtfv5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Operating lease liability, current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,661,788</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_maOLLzSG7_z3v2inVy2kXg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Operating lease liability, net of current</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">4,374,315</td><td style="text-align: left"> </td></tr> </table>

6036104

1661788

4374315

The following table provides a summary of other information related to the leases at September 30, 2022: SCHEDULE OF OPERATING LEASE TERM <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Other Information</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average remaining lease term for operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 76%; text-align: justify">Weighted-average discount rate for operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20220930_zZhJ0I0iDkce" style="width: 20%; text-align: right" title="Weighted-average discount rate for operating leases">1.30</td><td style="width: 1%; text-align: left">%</td></tr> </table>

P5Y

0.0130

500000

1500000

The components of lease expenses for the three and nine months ended September 30, 2022: SCHEDULE OF COMPONENTS OF LEASE EXPENSE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20220701__20220930_zp8plqPRmYE9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Month Ended September 30, 2022</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20220101__20220930_zZVp7mst0rVg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine Month Ended September 30, 2022</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseCost_maLCz15M_zrimhufKMY0g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">322,629</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">964,753</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--VariableLeaseCost_maLCz15M_zaKqe0CGk5Tj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Variable lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,633</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">267,301</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ShortTermLeaseCost_maLCz15M_zNdrtmI34LY1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Short-term lease cost</td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">89,455</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">267,496</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LeaseCost_iT_mtLCz15M_zfWAv9tUqlV1" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total rent expense</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">489,717</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,499,550</td><td style="text-align: left"> </td></tr> </table>

322629

964753

77633

267301

89455

267496

489717

1499550

1100000

NOTE 6 – RELATED PARTY TRANSACTIONS During the three- and nine-months periods ended September 30, 2022, the Company paid approximately $45,000 $179,000, respectively in consulting fees to another company owned by a related party.

45000

179000

NOTE 7 – STOCK/UNITS The Company has authorized and issued 2,200 shares of common stock. Of these shares, 2,000 are at $.001 par value and 200 at no par. The limited liability companies are single member limited liability companies with no units issued and outstanding.

2200

2000

0.001

NOTE 8 – COMMITMENTS COMMITMENTS AND CONTINGENCIES The Company has an agreement with a food distributor that runs from November 24, 2021, to March 11, 2025, where 90% of the products sold at the New York Stores must be purchased from that distributor.

NOTE 9 – DEBT During 2021, the Company applied for and received a loan from its bank in the amount of $817,927 through the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). In November 2021, the loan, including principal and interest was forgiven and considered repaid in full. The balance has been recorded as forgiveness of paycheck protection program loan for the year ended December 31, 2021. According to the rules of the SBA, the Company is required to retain PPP loan documentation for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of the SBA, including representatives of its Office of Inspector General, to access such files upon request. Should the SBA conduct such a review and reject all or some of the Company’s judgements pertaining to satisfying PPP loan eligibility or forgiveness conditions, the Company may be required to adjust previously reported amounts and disclosures in the financial statements. The $88,574 note payable as of September 30, 2022, relates to the financing of leasehold improvements at the store in Somers, New York and matures as follows: SCHEDULE OF DEBT MATURITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20220930_zHJc2kEPUq" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maDICAz1w5_zvf040VQ5Ucf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: right">2022 (3 remaining months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">6,983</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maDICAz1w5_zFlHUtwLYmT8" style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,638</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maDICAz1w5_z1dj6OVrbkp1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,805</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maDICAz1w5_zLUx0RfjyGvf" style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,148</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DebtInstrumentCarryingAmount_iTI_mtDICAz1w5_zbzb2UrXuIWg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total debt</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">88,574</td><td style="text-align: left"> </td></tr> </table>

817927

88574

SCHEDULE OF DEBT MATURITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20220930_zHJc2kEPUq" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maDICAz1w5_zvf040VQ5Ucf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: right">2022 (3 remaining months)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">6,983</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maDICAz1w5_zFlHUtwLYmT8" style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,638</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maDICAz1w5_z1dj6OVrbkp1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,805</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maDICAz1w5_zLUx0RfjyGvf" style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,148</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DebtInstrumentCarryingAmount_iTI_mtDICAz1w5_zbzb2UrXuIWg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total debt</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">88,574</td><td style="text-align: left"> </td></tr> </table>

6983

28638

29805

23148

88574

NOTE 10 – INCOME TAXES INCOME TAX S-Corporation Dean’s Natural Food Market of Shrewsbury, Inc. has elected to be treated as an S Corporation for federal and state income tax purposes. Green’s Natural Foods, Inc. was treated as an S Corporation until December 30, 2020, when it was purchased and became a Qualified Subsidiary under Hudson Equity Partners, LLC. No provision has been made for federal income taxes since S Corporations are not taxable entities. Individual partners/shareholders report their share of taxable income or loss in their personal tax returns. C-Corporation Dean’s Natural Food Market, Inc. is a C Corporation for federal income tax purposes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, their respective tax bases, and tax operating loss and credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are subject to valuation allowances if, based on all available evidence, management determines that it is more likely than not that some position or all of the deferred tax assets and liabilities will not be realized. The financial impact of Dean’s Natural Food Market, Inc. deferred, and current income taxes is not considered material as of the period ended September 30, 2022. Limited Liability Companies Dean’s Natural Food Market of Basking Ridge, LLC, Dean’s Natural Food Market of Chester, LLC, and Dean’s Natural Holdings, LLC have elected to be treated as single-member limited liability companies for federal and state income tax purposes with all income tax liabilities and/or benefits of the entities being passed through to its members. As such, there is no recognition of federal or state income taxes for each of these entities. Any uncertain tax position taken by the member is not an uncertain position of the entities. In accordance with the LLC agreements, the term of the Company is indefinite with termination determined by the Member. The LLC agreements indicate that the Member shall not have any liability for the obligations of the Company, except to the extent expressly mandated by law. The Company has evaluated any uncertain tax positions and related income tax contingencies and determined uncertain positions, if any, are not material to the financial statements. Penalties and interest assessed by income taxing authorities are included in operating expenses, if incurred. None of the Company’s current returns are under examination.

NOTE 11 – SUBSEQUENT EVENTS In accordance with FASB ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2022, and through December 19, 2023, the date of this report being issued and has determined that the only material subsequent event is the company sales. On October 14, 2022, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Healthy Choice Markets IV, LLC (“HCM V”), wholly owned subsidiary of Healthier Choices Management Corp. Pursuant to the Purchase Agreement, the Company sold certain assets and certain liabilities of an organic and natural health food and vitamin chain with eight store locations in New York and northern and central New Jersey (the “Stores”). The cash purchase price under the Asset Purchase Agreement was $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNVQlNFUVVFTlQgRVZFTlRTIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_901_eus-gaap--AssetAcquisitionConsiderationTransferred_c20221014__20221014__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zvsoKKxnt3H4" title="Asset acquisition consideration transferred">5,142,000, with $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNVQlNFUVVFTlQgRVZFTlRTIChEZXRhaWxzIE5hcnJhdGl2ZSkA" id="xdx_906_ecustom--AssetAcquisitionConsiderationTransferredLiability_c20221014__20221014__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zdbXeeMk0AVa" title="Asset acquisition consideration transferred liability">3,000,000 seller financing in the form of promissory note. The Company assigned all lease obligations for the Stores to HCM V. The transaction was closed on October 14, 2022.

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