| LEASES |
NOTE 5 — LEASES
We have finance and operating leases for our
corporate office, vehicles, and certain office and computer equipment. Our three operating leases have remaining lease terms
of 7.92
years, 4.33
years, and 3.67 years, respectively. Our three finance leases have remaining lease terms of 2.67
years, 2.25
years, and 4.00
years, respectively, as of September 30, 2024.
The components of lease expense were as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
|
| |
|
September 30, |
|
September 30, |
|
| |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating lease cost |
|
$ |
116,772 |
|
$ |
112,279 |
|
$ |
341,126 |
|
$ |
224,801 |
|
| Short-term lease cost |
|
|
556 |
|
|
25,143 |
|
|
4,572 |
|
|
78,037 |
|
| Total lease cost |
|
$ |
117,328 |
|
$ |
137,422 |
|
$ |
345,698 |
|
$ |
302,838 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of right-of-use assets |
|
$ |
28,896 |
|
$ |
27,224 |
|
$ |
86,689 |
|
$ |
54,447 |
|
| Interest on lease liabilities |
|
|
5,283 |
|
|
6,387 |
|
|
17,007 |
|
|
13,107 |
|
| Total finance lease cost |
|
$ |
34,179 |
|
$ |
33,611 |
|
$ |
103,696 |
|
$ |
67,554 |
|
Supplemental cash flow information related to leases
was as follows:
| |
|
|
|
|
|
|
| |
|
Nine Months Ended |
|
| |
|
September 30, |
|
| |
|
2024 |
|
2023 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
373,046 |
|
$ |
229,879 |
|
| Financing cash flows from finance leases |
|
|
98,578 |
|
|
61,600 |
|
Supplemental balance sheet information related to
leases was as follows:
| |
|
|
|
|
|
| |
|
September 30,
2024 |
|
December 31,
2023 |
|
| |
|
|
|
|
|
|
|
| Operating Leases |
|
|
|
|
|
|
|
| Operating lease right-of-use assets |
|
$ |
3,063,731 |
|
$ |
3,514,055 |
|
| |
|
|
|
|
|
|
|
| Operating lease current liabilities |
|
|
395,954 |
|
|
368,313 |
|
| Operating lease long term liabilities |
|
|
3,102,097 |
|
|
3,336,300 |
|
| Total operating lease liabilities |
|
$ |
3,498,051 |
|
$ |
3,704,613 |
|
| |
|
|
|
|
|
|
|
| Finance Leases |
|
|
|
|
|
|
|
| Property and equipment, at cost |
|
$ |
577,929 |
|
$ |
577,929 |
|
| Accumulated depreciation |
|
|
(248,150 |
) |
|
(161,461 |
) |
| Property and equipment, net |
|
$ |
329,779 |
|
$ |
416,468 |
|
| |
|
|
|
|
|
|
|
| Finance lease current liabilities |
|
|
114,297 |
|
|
109,540 |
|
| Finance lease long term liabilities |
|
|
230,332 |
|
|
316,623 |
|
| Total finance lease liabilities |
|
$ |
344,629 |
|
$ |
426,163 |
|
| |
|
September 30,
2024 |
|
December 31,
2023 |
|
| |
|
|
|
|
|
| Weighted Average Remaining Lease Term |
|
|
|
|
|
| Operating leases |
|
5.31 Years |
|
6.88 Years |
|
| Finance leases |
|
2.97 Years |
|
3.72 Years |
|
| |
|
|
|
|
|
| Weighted Average Discount Rate |
|
|
|
|
|
| Operating leases |
|
6.56% |
|
5.76% |
|
| Finance leases |
|
6.30% |
|
6.19% |
|
Maturities of lease liabilities are as follows:
| Year Ending December 31, |
|
Operating Leases |
|
Finance Leases |
|
| Remainder of 2024 |
|
$ |
133,495 |
|
|
32,897 |
|
| 2025 |
|
|
533,979 |
|
|
131,437 |
|
| 2026 |
|
|
533,979 |
|
|
131,437 |
|
| 2027 |
|
|
533,979 |
|
|
74,194 |
|
| 2028 |
|
|
520,985 |
|
|
6,180 |
|
| Thereafter |
|
|
1,833,603 |
|
|
— |
|
| Total undiscounted lease payments |
|
|
4,090,020 |
|
|
376,145 |
|
| Less: imputed interest |
|
|
(591,969 |
) |
|
(31,516 |
) |
| Total lease liabilities |
|
$ |
3,498,051 |
|
$ |
344,629 |
|
|