Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.24.1.1.u2
LEASES
3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
LEASES

NOTE 5. 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 March 31, 2024, no renewal option periods were included in any estimated minimum lease term as the options were not deemed reasonably certain to be exercised. Our leases have remaining lease terms ranging from 14 months to 36 months.

Supplemental balance sheet information related to leases is as follows:

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

Classification

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use lease assets

 

$

720,323

 

 

$

785,543

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease current liabilities

 

$

272,052

 

 

$

268,541

 

 

 Current portion of operating lease liabilities

Operating lease long-term liabilities

 

 

513,235

 

 

 

585,879

 

 

 Long-term operating lease liabilities

Total operating lease liabilities

 

$

785,287

 

 

$

854,420

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term in years:

 

 

 

 

 

 

 

 

Operating leases

 

 

2.72

 

 

 

3.12

 

 

 

Weighted-average discount rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

4.4

%

 

 

5.4

%

 

 

 

The components of lease expense are as follows:

 

 

 

Three Months Ended March 31,

 

 

 

 

 

2024

 

 

2023

 

 

Classification

Operating lease cost

 

$

75,643

 

 

$

72,071

 

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information related to leases is as follows:

 

 

 

Three Months Ended March 31,

 

 

 

 

 

2024

 

 

2023

 

 

Classification

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

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

65,449

 

 

$

72,081

 

 

 Net income

 

As of March 31, 2024, future maturities of our operating lease liabilities are as follows:

 

 

 

Amount

 

For the remaining nine months ending December 31, 2024

 

$

224,889

 

Years ending December 31,

 

 

 

2025

 

$

306,055

 

2026

 

 

302,011

 

2027

 

 

2,985

 

Total minimum lease payments

 

 

835,940

 

Less: imputed interest

 

 

(50,653

)

Total operating lease liability

 

 

785,287

 

Less: current portion

 

 

(272,052

)

Long-term portion

 

$

513,235