LifeMD, Inc. Leases Disclosure
NOTE 11 – LEASES
The Company leases office spaces domestically under operating leases including: (1) the Company’s headquarters in New York, New York for which the lease expires in 2028, (2) a marketing and sales center in Huntington Beach, California for which the lease expires in 2027, (3) a patient care center in Greenville, South Carolina for which the lease expires in 2032, with an additional five year option to extend, for which the Company expects to utilize, and (4) a warehouse and pharmacy operations center in Lancaster, Pennsylvania for which the lease expires in 2029, with an additional five year option to extend, for which the Company expects to utilize.
The following is a summary of the Company’s operating right-of-use assets and operating lease liabilities as of December 31, 2025:
| Right-of-use assets | $ | 5,267,857 | ||
| Current operating lease liabilities | $ | 642,422 | ||
| Noncurrent operating lease liabilities | $ | 5,681,374 |
The table below reconciles the undiscounted future minimum lease payments under the above noted operating leases to the total operating lease liabilities recognized on the consolidated balance sheet as of December 31, 2025:
| Fiscal year 2026 | $ | 1,260,397 | ||
| Fiscal year 2027 | 1,225,154 | |||
| Fiscal year 2028 | 925,152 | |||
| Fiscal year 2029 | 765,837 | |||
| Fiscal year 2030 | 794,164 | |||
| Thereafter | 5,064,559 | |||
| Less: imputed interest | (3,711,467 | ) | ||
| Present value of operating lease liabilities | $ | 6,323,796 |
Operating lease expenses were $1.5 million and $1.1 million for the years ended December 31, 2025 and 2024, respectively, and were included in other operating expenses in our consolidated statement of operations.
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid for operating lease liabilities | $ | 842,070 | $ | 720,958 | ||||
| Weighted average remaining lease term in years | 10.26 | 10.59 | ||||||
| Weighted average discount rate | 10.93 | % | 11.06 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Mar 30, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.