LEASES (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended March 31,
	2024		2023
Operating lease expense
Rent - cost of services	63,961		$	45,104
General and administrative expense	810		356
Variable lease costs	8,914		5,920
Total operating lease expense	$	73,685	$	51,380
Finance lease expense
Amortization of right-of-use assets	322		308
Interest on lease liabilities	740		132
Total financing lease expense	1,062		440
Total Lease Expense	$	74,747	$	51,820

__________________

(1)Rent - cost of services includes other variable lease costs such as Consumer Price Index (CPI) increases and other rent adjustments of $535, and $958 for the three months ended March 31, 2024, and 2023 respectively.

(2)Variable lease costs, including property taxes and insurance, are classified in Cost of services in the Company’s unaudited condensed combined/consolidated statements of income and comprehensive income

The following table summarizes supplemental cash flow information related to leases:

	Three Months Ended March 31,
	2024		2023
Operating cash paid for amounts included in the measurement of operating lease liabilities	$	57,508	$	41,163
Operating cash paid for amounts included in the measurement of finance lease liabilities	740		132
Financing cash paid for amounts included in the measurement of finance lease liabilities	216		565
Operating lease right-of-use assets obtained in exchange for lease liabilities	251,247		210,216
Financing lease right-of-use assets obtained in exchange for lease liabilities	—		—

Information relating to the lease term and discount rate is as follows:

	As of March 31, 2024
Weighted-average remaining lease term (years)
Operating leases	14
Financing leases	3
Weighted-average discount rate
Operating leases	5.8	%
Financing leases	7.2	%

Schedule of Supplemental Cash Flow Related to Leases

The components of lease expense were as follows:

	Three Months Ended March 31,
	2024		2023
Operating lease expense
Rent - cost of services	63,961		$	45,104
General and administrative expense	810		356
Variable lease costs	8,914		5,920
Total operating lease expense	$	73,685	$	51,380
Finance lease expense
Amortization of right-of-use assets	322		308
Interest on lease liabilities	740		132
Total financing lease expense	1,062		440
Total Lease Expense	$	74,747	$	51,820

__________________

(1)Rent - cost of services includes other variable lease costs such as Consumer Price Index (CPI) increases and other rent adjustments of $535, and $958 for the three months ended March 31, 2024, and 2023 respectively.

(2)Variable lease costs, including property taxes and insurance, are classified in Cost of services in the Company’s unaudited condensed combined/consolidated statements of income and comprehensive income

The following table summarizes supplemental cash flow information related to leases:

	Three Months Ended March 31,
	2024		2023
Operating cash paid for amounts included in the measurement of operating lease liabilities	$	57,508	$	41,163
Operating cash paid for amounts included in the measurement of finance lease liabilities	740		132
Financing cash paid for amounts included in the measurement of finance lease liabilities	216		565
Operating lease right-of-use assets obtained in exchange for lease liabilities	251,247		210,216
Financing lease right-of-use assets obtained in exchange for lease liabilities	—		—

Information relating to the lease term and discount rate is as follows:

	As of March 31, 2024
Weighted-average remaining lease term (years)
Operating leases	14
Financing leases	3
Weighted-average discount rate
Operating leases	5.8	%
Financing leases	7.2	%

Operating Lease Maturity

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Finance Leases		Operating Leases		Total
2024 (remainder)	$	2,887	$	176,540	$	179,427
2025	23,560		235,714		259,274
2026	2,241		235,489		237,730
2027	17,995		233,590		251,585
2028	782		235,762		236,544
2029	391		237,077		237,468
Thereafter	—		1,947,078		1,947,078
Total lease payments	$	47,856	$	3,301,250	$	3,349,106
Less: present value discount	(6,364)		(1,063,768)		(1,070,132)
Present value of lease liabilities	$	41,492	$	2,237,482	$	2,278,974

Finance Lease Maturity

Maturities of lease liabilities as of March 31, 2024 were as follows:

	Finance Leases		Operating Leases		Total
2024 (remainder)	$	2,887	$	176,540	$	179,427
2025	23,560		235,714		259,274
2026	2,241		235,489		237,730
2027	17,995		233,590		251,585
2028	782		235,762		236,544
2029	391		237,077		237,468
Thereafter	—		1,947,078		1,947,078
Total lease payments	$	47,856	$	3,301,250	$	3,349,106
Less: present value discount	(6,364)		(1,063,768)		(1,070,132)
Present value of lease liabilities	$	41,492	$	2,237,482	$	2,278,974