Receivables funding

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

Receivables funding

14. Receivables funding

May 30, 2024 funding

On May 30, 2024, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Fortunate Sons (“Fortunate”), whereby $375,000 of the Receivables of Evernia were sold to Fortunate for gross proceeds of $300,000. The Company also incurred fees of $5,000, resulting in net proceeds of $295,000, in addition the Company incurred an additional fee of $75,000 related to this funding, resulting in total fees and discount of $155,000 which was amortized over the original term of the funding. The Company is obliged to pay $10,750 per week commencing 4 weeks after the agreement was entered into until the amount of $375,000 is paid in full. The maturity date of the receivables funding was February 24, 2025, however the original payment schedule was not adhered to, and we are in constant communication with Fortunate regarding repayment of the balance..

The discount and fees totaling $155,000 associated with the August 2024 funding was capitalized and was being amortized using the effective interest method over the initial repayment period. The Company has repaid $161,250 and the balance outstanding as of March 31, 2025 was $213,750. The Company has paid an additional $32,250 subsequent to March 31, 2025.

August 30, 2024 funding 

On August 30, 2024, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $312,500 of the Receivables of Evernia were sold to Itria, for gross proceeds of $247,000, net of discount and fees of $65,500. The Company is obliged to pay $8,013 per week until the amount of $312,500 is paid in full, the maturity date of the receivables funding is June 3, 2025.

The discount and fees totaling $65,500 associated with the August 2024 funding was capitalized and was being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $8,013 totaling $232,372 and settled the outstanding balance of $88,141 on March 25, 2025, partially out of the proceeds of an additional receivables sale agreement entered into on March 25, 2025, thereby extinguishing the debt and accelerating the amortization of the remaining discount and fees.

At March 31, 2025 there was an overpayment on the August 30, 2024 funding of $8,013, which was subsequently refunded.

October 9, 2024 funding 

On October 9, 2024, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $187,500 of the Receivables of Evernia were sold to Itria, for gross proceeds of $150,000. The Company also incurred fees of $2,000, resulting in net proceeds of $148,000, net of discount and fees of $39,500. The Company is obliged to pay $4,808 per week until the amount of $187,500 is paid in full. The maturity date of this receivables funding is July 10, 2025.

The discount and fees totaling $39,500 associated with the October 2024 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $4,808 totaling $57,692 and settled the outstanding balance of $119,308, net of an early settlement discount of $10,500, thereby extinguishing the debt.

January 6, 2025 funding

On January 6, 2025, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $307,500 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $3,000, resulting in net proceeds of $247,000, net of discount and fees of $60,500. The Company is obliged to pay $7,885 per week until the amount of $307,500 is paid in full. The maturity date of this receivables funding is October 6, 2025.

The discount and fees totaling $60,500 associated with the January 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $7,885 totaling $94,165, and the balance outstanding at March 31, 2025 was $182,584, net of debt discount of $30,300.

February 13, 2025 funding 

On February 13, 2025, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with CFG Merchant Solutions, LLC (“CFG”), whereby $166,250 of the Receivables of Evernia were sold to CFG, for gross proceeds of $125,000. The Company also incurred fees of $625 resulting in net proceeds of $124,375, net of discount and fees of $41,875. The Company is obliged to pay $3,778 per week until the amount of $166,250 is paid in full. The maturity date of this receivables funding is December 19, 2025.

The discount and fees totaling $41,875 associated with the February 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $3,778 totaling $22,670, and the balance outstanding at March 31, 2025 was $112,505, net of debt discount of $31,075.

February 18, 2025 funding 

On February 18, 2025, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Purpletree Funding, LLC (“Purpletree”), whereby $99,750 of the Receivables of Evernia were sold to Purpletree for gross proceeds of $75,000. The Company also incurred fees of $750 resulting in net proceeds of $74,250, net of discount and fees of $25,500. The Company is obliged to pay $3,563 per week until the amount of $99,750 is paid in full. The maturity date of this receivables funding is September 2, 2025.

The discount and fees totaling $25,500 associated with the February 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $3,563 totaling $17,813, and the balance outstanding at March 31, 2025 was $65,415, net of debt discount of $16,523.

March 25, 2025 funding 

On March 25, 2025, the Company, through its subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $292,500 of the Receivables of Evernia were sold to Itria for gross proceeds of $223,000. The Company also incurred fees of $750 resulting in net proceeds of $222,250, net of discount and fees of $70,250. The Company is obliged to pay $7,500 per week until the amount of $292,500 is paid in full. The Company used $88,141 of the proceeds to settle the Itria August 30, 2024 receivables funding. The maturity date of this receivables funding is December 24, 2025.

The discount and fees totaling $70,250 associated with the March 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The balance outstanding at March 31, 2025 was $225,445, net of debt discount of $67,055.