Leases

9 Months Ended

Sep. 30, 2024

We determine whether an arrangement is a lease at inception and whether such leases are operating or financing leases. For each lease agreement, the Company determines its lease term as the non-cancellable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option. We use these options in determining our capitalized financing and right-of-use assets and lease liabilities.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. To determine the discount rate to use in determining the present value of the lease payments, we use the rate implicit in the lease if determinable, otherwise we use our incremental borrowing rate.

The Company maintains operating leases for corporate and field offices. The Company’s leases have initial terms ranging from one month to three years, some of which include the option to renew, and some of which include an early termination option. During the nine months ended September 30, 2024, the Company extended certain of its leases for periods ranging from one to three years.

The following table summarizes the weighted average remaining lease term and discount rate for operating leases as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
Weighted average remaining lease term for operating leases	2.12 years		1.75 years
Weighted average discount rate for operating leases	6.29	%	4.22	%

The following table summarizes the future minimum payments for operating leases as of September 30, 2024, due in each year ending December 31:


Year	Minimum Lease Payments
Remainder of 2024	$	345,557
2025	1,209,263
2026	336,137
2027	240,424
2028	167,126
Thereafter	166,521
Total lease payments	2,465,028
Less: imputed interest	(105,803)
Present value of operating lease liabilities	$	2,359,225