Funding arrangements, net

6 Months Ended

Jun. 30, 2025

Receivables [Abstract]

Funding arrangements, net

14. Funding arrangements, net

May 30, 2024 funding

On May 30, 2024, the Company, through its subsidiary Evernia Health Center, LLC (“Evernia”), entered into a financing arrangement with Fortunate Sons (“Fortunate”), whereby it received 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 this 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 $193,500 and the balance outstanding as of June 30, 2025 was $181,500.

August 30, 2024 funding 

On August 30, 2024, the Company, through its subsidiary Evernia, entered into a financing arrangement with Itria Ventures LLC (“Itria”), whereby it received 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 this funding was 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 financing arrangement entered into on March 25, 2025, thereby extinguishing the debt and accelerating the amortization of the remaining discount and fees.

October 9, 2024 funding 

On October 9, 2024, the Company, through its subsidiary Evernia, entered into a financing arrangement with Itria, whereby it received 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 funding was 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, entered into a financing arrangement with Itria, whereby it received 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 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 $157,692 and settled the outstanding balance with a payment of $157,692 out of the proceeds of the May 28, 2025 funding, resulting in an overpayment of $7,885, which was refunded on August 12, 2025. The settlement resulted in the extinguishment of the debt and the acceleration of the remaining unamortized debt discount of $21,890.

February 13, 2025 funding 

On February 13, 2025, the Company, through its subsidiary Evernia, entered into financing arrangement with CFG Merchant Solutions, LLC (“CFG”), whereby it received 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 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 $71,790, and the balance outstanding at June 30, 2025 was $80,287, net of debt discount of $14,173.

February 18, 2025 funding 

On February 18, 2025, the Company, through its subsidiary Evernia, entered into a financing arrangement with Purpletree Funding, LLC (“Purpletree”), whereby it received 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 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 $64,125, and the balance outstanding at June 30, 2025 was $32,417, net of debt discount of $3,208.

March 25, 2025 funding 

On March 25, 2025, the Company, through its subsidiary Evernia, entered into a financing arrangement with Itria, whereby it received 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 August 30, 2024 funding. The maturity date of this 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 Company made weekly cash payments of $7,500, totaling $97,500 and the balance outstanding at June 30, 2025 was $163,735, net of debt discount of $31,265.

April 9, 2025 funding 

On April 9, 2025, the Company, through its subsidiary Aria Kentucky, LLC (“Aria KY”) entered into a financing arrangement with Itria, whereby it received proceeds of $494,500, net of discount and fees of $130,500. The Company is obliged to pay $12,019 per week until the amount of $625,000 is paid in full. The maturity date of this funding is April 14, 2026.

The discount and fees totaling $130,500 associated with the April 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $12,019, totaling $120,192 and the balance outstanding at June 30, 2025 was $420,671, net of debt discount of $84,137.

May 28, 2025 funding 

On May 28, 2025, the Company, through its subsidiary Evernia, entered into a financing arrangement with Itria, whereby it received proceeds of $296,500, net of discount and fees of $81,500. The Company used $157,692 of the proceeds to settle the January 6, 2025 funding. The Company is obliged to make weekly cash payments of $7,269 until the amount of $378,000 is paid in full. The maturity date of this funding is December 24, 2025.

The discount and fees totaling $81,500 associated with the May 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $7,269, totaling $29,077 and the balance outstanding at June 30, 2025 was $280,798, net of debt discount of $68,125.

June 19, 2025 funding 

On June 19, 2025, the Company, through its subsidiary Aria KY, entered into a financing arrangement with Itria, whereby it received proceeds of $97,500, net of discount and fees of $27,500. The Company is obliged to pay $3,205 per week until the amount of $125,000 is paid in full. The maturity date of this funding is March 19, 2026.

The discount and fees totaling $27,500 associated with the May 2025 funding was capitalized and is being amortized using the effective interest method over the repayment period. The Company made weekly cash payments of $3,205, totaling $3,205 and the balance outstanding at June 30, 2025 was $96,454, net of debt discount of $25,341.