Annual report pursuant to Section 13 and 15(d)

LEASES

v3.23.1
LEASES
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES

NOTE 8. LEASES

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.

 

As of December 31, 2022, our leases have remaining lease terms ranging from 12 months to 51 months. Some of these leases contain options that allow us to extend or terminate the lease agreement.

 

As of December 31, 2022, no renewal option periods were included in any estimated minimum lease terms as the options were not deemed reasonably certain to be exercised.

Supplemental balance sheet information related to leases is as follows:

 

 

 

As of December 31, 2022

 

 

Amount

 

 

Classification

Operating leases:

 

 

 

 

 

Operating lease right-of-use lease assets

 

$

1,002,749

 

 

 

 

 

 

 

 

 

Operating lease current liabilities

 

$

248,317

 

 

 Current portion of operating lease liabilities

 

 

 

 

 

 

Operating lease long-term liabilities

 

 

830,289

 

 

 Long-term operating lease liabilities

 

 

 

 

 

 

Total operating lease liabilities

 

$

1,078,606

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term:

 

 

 

 

 

Operating leases

 

 

3.94

 

 

 

 

 

 

 

 

 

Weighted-average discount rate:

 

 

 

 

 

Operating leases

 

 

4.4

%

 

 

 

The components of lease expense are as follows:

 

 

 

Year Ended December 31, 2022

 

 

Amount

 

 

Classification

Operating lease cost

 

$

286,296

 

 

Selling, general and administrative expense

 

Supplemental cash flow information related to leases is as follows:

 

 

 

Year Ended December 31, 2022

 

 

Amount

 

 

Classification

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

 

 

 

 

 

Operating cash flows from operating leases

 

$

281,303

 

 

 Net income

 

 

 

 

 

 

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

 

 

 

 

 

Operating leases

 

$

71,901

 

 

 Supplemental cash flow information

 

 

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

 

 

 

Amount

 

2023

 

$

290,877

 

2024

 

 

288,892

 

2025

 

 

294,507

 

2026

 

 

302,011

 

2027

 

 

2,985

 

Total minimum lease payments

 

 

1,179,272

 

Less: imputed interest

 

 

(100,666

)

Total operating lease liability

 

 

1,078,606

 

Less: current portion

 

 

(248,317

)

Long-term portion

 

$

830,289