XML 29 R19.htm IDEA: XBRL DOCUMENT v3.23.3
LEASES
9 Months Ended
Sep. 30, 2023
LEASES  
LEASES

 NOTE 13 – LEASES

 

The Company has various operating and finance lease agreements with terms up to 10 years, for various types of property and equipment (such as office space and vehicles) etc. Some leases include options to purchase, terminate or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised.

 

The assets and liabilities from operating and finance leases are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s secured incremental borrowing rates or implicit rates, when readily determinable. Short-term leases, which have an initial term of 12 months or less, are not recorded on the balance sheet.

 

The Company’s operating leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which is determined using the average interest rate of our long-term debt on the date of inception.

 

Operating Leases

 

The Company’s weighted-average remaining lease term relating to its operating leases is 6.64 years, with a weighted-average discount rate of 6.74%.

 

The following table presents information about the amount and timing of cash flows arising from the Company’s operating leases as of September 30, 2023:

Maturity of Operating Lease Liability:

 

2023

 

$54,076

 

2024

 

 

217,112

 

2025

 

 

141,302

 

2026

 

 

99,562

 

Thereafter

 

 

480,361

 

Total undiscounted operating lease payments

 

$992,413

 

Less: Imputed interest

 

 

(194,734 )

Present value of operating lease liabilities

 

$797,679

 

 

The Company incurred lease expense, due to amortization of operating lease right-of-use assets, of $173,894 and $158,407 which was included in “General and administrative expenses,” for the nine months ended September 30, 2023 and 2022, respectively. For the three months ended September 30, 2023 and 2022 the Company incurred lease expense of $50,690 and $50,209, respectively.

 

Finance leases

 

The Company’s weighted-average remaining lease term relating to its finance leases is 2.8 years, with a weighted-average discount rate of 6.74%, based on the interest rate implicit in the lease.

 

The following table presents information about the amount and timing of cash flows arising from the Company’s finance leases as of September 30, 2023:

 

Maturity of Finance Lease Liability

 

 

 

2023

 

$41,451

 

2024

 

 

145,743

 

2025

 

 

117,000

 

2026

 

 

91,080

 

Thereafter

 

 

38,385

 

Total undiscounted finance lease payments

 

$433,659

 

Less: Imputed interest

 

 

(43,027 )

Present value of finance lease liabilities

 

$390,632

 

 

The Company incurred interest expense on its finance leases of $20,629 and $11,645 which was included in “Interest expense”, on the accompanying condensed statements of operations and comprehensive loss for the nine months ended September 30, 2023 and 2022, respectively and $6,920 and $4,012 for the three months ended September 30, 2023 and 2022, respectively. The Company incurred amortization expense on its finance leases of $102,549 and $60,935, which was included in “Depreciation and amortization expense”, on the accompanying condensed statements of operations and comprehensive loss for the nine months ended September 30, 2023 and 2022, respectively and $35,452 and $21,628 for the three months ended September 30, 2023 and 2022, respectively. The total cash used for the Company’s finance leases for the nine months ended September 30, 2023 and September 30, 2022 amounted to $118,847 and $71,172 respectively and is solely related to lease payments. For the three months ended September 30, 2023 and 2022 the total cash used for the Company’s finance leases amounted to $41,094 and $24,495, respectively.