LEASES

6 Months Ended

Jun. 30, 2025

NOTE 5 – LEASES

The Company’s operating leases are primarily for real estate, including medical office suites and corporate offices. For the three months ended June 30, 2025 and 2024, the Company incurred rent expense of $1.7 million and $1.6 million, respectively, for its medical office suites. For the six months ended June 30, 2025 and 2024, the Company incurred rent expense of $3.5 million and $3.1 million, respectively, related to its medical office suites. The Company’s rent expense related to its medical office suites is classified in cost of services within the Company’s condensed consolidated statements of operations. The Company incurred rent expense of $64,000 and $91,000 for the three months ended June 30, 2025 and 2024, respectively, and $155,000 and $182,000 for the six months ended June 30, 2025 and 2024, respectively, related to the corporate offices which is classified in selling, general and administrative expenses. The Company currently does not have any finance leases.

Real estate lease agreements typically have initial terms of five to ten years and may include one or more options to renew. The useful life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants.

The following table presents supplemental cash flow information for the six months ended June 30, 2025 and 2024 (in 000’s):


	June 30, 2025		June 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,497	$	3,126
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	4,360

Future minimum rental payments under all non-cancellable operating lease agreements for the succeeding five years are as follows, excluding common area maintenance charges that may be required by the agreements (in 000’s):


Year ending December 31,

2025 (excluding the six months ended June 30, 2025)	$	3,803
2026	7,348
2027	6,776
2028	5,959
2029	4,554
Thereafter	12,205
Total lease payments	40,645
Less: imputed interest	(13,075)
Total lease obligations	$	27,570

Airsculpt Technologies, Inc. 10-Q