Leases

6 Months Ended

Jun. 30, 2023

Leases

Leases

Note 12 – Leases

We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets.  As of June 30, 2023 and December 31, 2022, total operating and financed right-of-use assets were $128,689 and $110,738, and $310,162 and $168,750, respectively.

For the six months ended June 30, 2023 and 2022, we recorded $58,013 and $48,697, respectively, in amortization expense related to finance leases. 

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments.

Information related to our operating lease liabilities are as follows:

	For the Six Months Ended June 30,
Cash paid for operating lease liabilities	$	104,276
Weighted-average remaining lease term	2.57 years
Weighted-average discount rate		6.25	%

Minimum future lease payments ended June 30, 2023
2023 (remainder of year)	$	110,260
2024		16,638
2025		5,653
2026		1,993
		134,544
Less imputed interest		(4,589	)
Total lease liabilities	$	129,955

Information related to our financed lease liabilities are as follows:

	For the Six Months Ended June 30,
Cash paid for finance lease liabilities	$	36,103
Weighted-average remaining lease term	1.63 years
Weighted-average discount rate		6.25	%

Minimum future lease payments ended June 30, 2023
2023 (remainder of the year)	$	36,957
2024		56,180
2025		18,490
		111,627
Less imputed interest		(4,186	)
Total lease liabilities	$	107,441