Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.22.1
LEASES
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
LEASES

NOTE 6. LEASES

Lessee

We have operating leases for our corporate office, two satellite facilities in the state of Washington and for certain equipment. We account for lease components (such as rent payments) separately from the non-lease components (such as common-area maintenance costs, real estate and sales taxes and insurance costs). The discount rate represents the interest rate implicit in each lease or our incremental borrowing rate at lease commencement date.

On September 21, 2021, we executed a third amendment to one of our satellite facilities to amend the lease expiration date from December 31, 2021 to December 31, 2023, with monthly base rents of $1,025 from January 1, 2022 to December 31, 2023. As a result of the amendment, we recorded a $23,293 increase to operating lease right-of-use assets and operating lease liabilities.

As of March 31, 2022, our leases have remaining lease terms ranging from three months to 57 months.

Supplemental balance sheet information related to leases is as follows:

 

 

 

As of March 31, 2022

 

 

Amount

 

 

Classification

Operating leases:

 

 

 

 

 

Operating lease right-of-use lease assets

 

$

1,110,721

 

 

 

 

 

 

 

 

 

Operating lease current liabilities

 

$

223,842

 

 

 Current portion of operating lease liabilities

 

 

 

 

 

 

Operating lease long-term liabilities

 

 

961,905

 

 

 Long-term operating lease liabilities

 

 

 

 

 

 

Total operating lease liabilities

 

$

1,185,747

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term:

 

 

 

 

 

Operating leases

 

4.7 years

 

 

 

 

 

 

 

 

 

Weighted-average discount rate:

 

 

 

 

 

Operating leases

 

 

4.2

%

 

 

 

The components of lease expense are as follows:

 

 

 

Three Months Ended March 31, 2022

 

 

Amount

 

 

Classification

Operating lease cost

 

$

70,905

 

 

Selling, general and administrative expense

 

 

 

 

 

 

 

Supplemental cash flow information related to leases is as follows:

 

 

 

Three Months Ended March 31, 2022

 

 

Amount

 

 

Classification

Cash paid for amounts included in the
   measurement of lease liabilities:

 

 

 

 

 

Operating cash flows from operating leases

 

$

68,840

 

 

 Net income

 

 

 

 

 

 

Right-of-use assets obtained in exchange
   for lease liabilities:

 

 

 

 

 

Operating leases

 

$

—

 

 

 Supplemental cash flow information

 

As of March 31, 2022, future maturities of our operating lease liabilities are as follows:

 

Twelve Months Ending March 31,

 

Amount

 

2023

 

$

223,842

 

2024

 

 

235,551

 

2025

 

 

245,204

 

2026

 

 

266,645

 

2027

 

 

214,505

 

Thereafter

 

 

—

 

Total lease liabilities

 

$

1,185,747