Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 693

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 693
---
 ECOMMERCE GROUP, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2024, and 2023 NOTE 13 — COMMITMENTS AND CONTINGENCIES (continued) Lease — Lounge Innovation WA Pty Ltd Lounge Innovation WA Pty Ltd entered into a lease agreement on January 1, 2024, with a related party, to lease a showroom and warehouse located at No.3 Yelland Way, Bassendean, WA, 6054 for $356,278 (AUD $540,000) per year payable in monthly installments of $29,690 (AUD $45,000). The lease expires on December 31, 2027. The first 12 months of lease payments were abated, all future payments after the first year of payments have an increase of 4% per year. In accordance with ASC 842, all future lease payments were discounted by the incremental borrowing rate of 7% to determine the present value of the lease at inception and the cost basis of the` ROU assets. Future minimum lease payments, exclusive of common area maintenance, are as follows:

| Years Ended December 31,   | ​ | ​ | ​ | ​ |         ​ | ​ | ​ |
|:---------------------------|:--|:--|:--|:--|----------:|:--|:--|
| 2025                       | ​ | ​ | ​ | $ |   333,984 | ​ | ​ |
| 2026                       | ​ | ​ | ​ | $ |   333,984 | ​ | ​ |
| 2027                       | ​ | ​ | ​ | $ |   333,984 | ​ | ​ |
| Total future lease payment | ​ | ​ | ​ | $ | 1,001,952 | ​ | ​ |

The lessor, Anthony Menna, is a related party under ASC 850, as he is both the landlord of the premises and a Director of Lounge Innovation WA Pty Ltd, the lessee. Accordingly, this arrangement qualifies as a common control lease as defined under ASU 2023-01. Management has evaluated the legally enforceable terms and conditions of the lease in accordance with ASC 842 and determined it should be classified as an operating lease. As a public business entity, the Company is not eligible to apply the practical expedient available to private entities under ASC 842-10-15-3A, and therefore