| LEASES |
NOTE 5 — LEASES
The Company has an operating lease for its corporate office, and finance
leases for certain office and computer equipment. Our operating lease has remaining lease term of 9.2 years. Our finance leases,
which were entered into in June 2022 and October 2022, respectively, have remaining lease terms of 3.9 and 4.3 years, respectively.
The components of lease expense were as follows:
Schedule of components of lease expense
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
|
| |
|
June 30, |
|
June 30, |
|
| |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating lease cost |
|
$ |
112,279 |
|
$ |
161,140 |
|
$ |
224,801 |
|
$ |
239,582 |
|
| Short-term lease cost |
|
|
25,143 |
|
|
28,579 |
|
|
78,037 |
|
|
78,288 |
|
| Total lease cost |
|
$ |
137,422 |
|
$ |
189,719 |
|
$ |
302,838 |
|
$ |
317,870 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of right-of-use assets |
|
$ |
27,224 |
|
$ |
5,918 |
|
$ |
54,447 |
|
$ |
5,918 |
|
| Interest on lease liabilities |
|
|
6,387 |
|
|
0 |
|
|
13,107 |
|
|
0 |
|
| Total finance lease cost |
|
$ |
33,611 |
|
$ |
5,918 |
|
$ |
67,554 |
|
$ |
5,918 |
|
Supplemental cash flow information related to leases was as follows:
Schedule of cash flow information related to leases
| |
|
|
|
|
|
|
| |
|
Six Months Ended |
|
| |
|
June 30, |
|
| |
|
2023 |
|
2022 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
229,879 |
|
$ |
181,544 |
|
| Financing cash flows from finance leases |
|
|
61,600 |
|
|
6,611 |
|
Supplemental balance sheet information related to leases was as follows:
Schedule of balance sheet information related to leases
| |
|
|
|
|
|
| |
|
June 30,
2023 |
|
December 31,
2022 |
|
| |
|
|
|
|
|
|
|
| Operating Leases |
|
|
|
|
|
|
|
| Operating lease right-of-use assets |
|
$ |
3,626,348 |
|
$ |
3,786,545 |
|
| |
|
|
|
|
|
|
|
| Operating lease current liabilities |
|
|
352,809 |
|
|
345,834 |
|
| Operating lease long term liabilities |
|
|
3,475,092 |
|
|
3,653,257 |
|
| Total operating lease liabilities |
|
$ |
3,827,901 |
|
$ |
3,999,091 |
|
| |
|
|
|
|
|
|
|
| Finance Leases |
|
|
|
|
|
|
|
| Property and equipment, at cost |
|
$ |
544,468 |
|
$ |
544,468 |
|
| Accumulated depreciation |
|
|
(105,342 |
) |
|
(50,895 |
) |
| Property and equipment, net |
|
$ |
439,126 |
|
$ |
493,573 |
|
| |
|
|
|
|
|
|
|
| Finance lease current liabilities |
|
|
101,072 |
|
|
98,335 |
|
| Finance lease long term liabilities |
|
|
343,053 |
|
|
394,283 |
|
| Total finance lease liabilities |
|
$ |
444,125 |
|
$ |
492,618 |
|
| |
|
June 30,
2023 |
|
December 31,
2022 |
|
| |
|
|
|
|
|
| Weighted Average Remaining Lease Term |
|
|
|
|
|
| Operating leases |
|
9.2 Years |
|
9.7 Years |
|
| Finance leases |
|
4.0 Years |
|
4.6 Years |
|
| |
|
|
|
|
|
| Weighted Average Discount Rate |
|
|
|
|
|
| Operating leases |
|
4.00% |
|
4.00% |
|
| Finance leases |
|
4.25% |
|
4.25% |
|
Maturities of lease liabilities are as follows:
Schedule of maturities of lease liabilities
| Year Ending December 31, |
|
Operating Leases |
|
Finance Leases |
|
| Remainder of 2023 |
|
$ |
249,752 |
|
|
61,600 |
|
| 2024 |
|
|
499,503 |
|
|
123,200 |
|
| 2025 |
|
|
499,503 |
|
|
123,200 |
|
| 2026 |
|
|
499,503 |
|
|
123,200 |
|
| 2027 |
|
|
499,503 |
|
|
65,957 |
|
| Thereafter |
|
|
2,331,015 |
|
|
— |
|
| Total undiscounted lease payments |
|
|
4,578,779 |
|
|
497,157 |
|
| Less: imputed interest |
|
|
(750,878 |
) |
|
(53,032 |
) |
| Total lease liabilities |
|
$ |
3,827,901 |
|
$ |
444,125 |
|
|