Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.1
LEASES
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES

NOTE 6 — LEASES

 

We have an operating lease for our corporate office, and 2 finance leases for certain office and computer equipment.  Our operating lease has remaining lease term of nine years and 4 months. Our finance leases, which were entered into in June 2022 and October 2022, respectively, have remaining lease terms of 4.2 and 4.5 years, respectively.

 

The components of lease expense were as follows:

             
    Three Months Ended  
    March 31,  
    2023   2022  
               
Operating lease cost   $ 112,522   $ 78,442  
Short-term lease cost     52,894     49,709  
Total lease cost   $ 165,416   $ 128,151  
               
Finance lease cost:              
Amortization of right-of-use assets   $ 27,223   $ —  
Interest on lease liabilities     6,720     —  
Total finance lease cost   $ 33,943   $ —  

 

Supplemental cash flow information related to leases was as follows:

             
    Three Months Ended  
    March 31,  
    2023   2022  
Cash paid for amounts included in the measurement of lease liabilities:              
Operating cash flows from operating leases   $ 113,813   $ 63,193  
Financing cash flows from finance leases     30,800     —  

 

Supplemental balance sheet information related to leases was as follows:

           
    March 31,
2023		   December 31,
2022		  
               
Operating Leases              
Operating lease right-of-use assets   $ 3,706,874   $ 3,786,545  
               
Operating lease current liabilities     349,304     345,834  
Operating lease long term liabilities     3,564,619     3,653,257  
Total operating lease liabilities   $ 3,913,923   $ 3,999,091  
               
Finance Leases              
Property and equipment, at cost   $ 544,468   $ 544,468  
Accumulated depreciation     (78,118)     (50,895 )
Property and equipment, net   $ 466,350   $ 493,573  
               
Finance lease current liabilities     99,694     98,335  
Finance lease long term liabilities     368,844     394,283  
Total finance lease liabilities   $ 468,538   $ 492,618  

 

    March 31,
2023		   December 31,
2022		  
           
Weighted Average Remaining Lease Term          
Operating leases   9.4 Years   9.7 Years  
Finance leases   4.3 Years   4.6 Years  
           
Weighted Average Discount Rate          
Operating leases   4.00%   4.0%  
Finance leases   4.25%   4.25%  

 

Maturities of lease liabilities are as follows:

 

Year Ending December 31,   Operating Leases   Finance Leases  
2023 (excluding the three months ended March 31, 2023)     374,627     92,400  
2024     499,503     123,200  
2025     499,503     123,200  
2026     499,503     123,200  
2027     499,503     65,957  
Thereafter     2,331,014     —  
Total undiscounted lease payments     4,703,653     527,957  
Less: imputed interest     (789,730 )   (59,419 )
Total lease liabilities   $ 3,913,923   $ 468,538