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Leases

3 Months Ended

Mar. 31, 2023

Note 9 - Leases

As a lessee, the Company leases its corporate office headquarters in Tulsa, Oklahoma and three field offices. The leases expire between 2024 and 2027. The corporate office has an option to renew for an additional five-year term. The option to renew the lease is generally not considered reasonably certain to be exercised. Therefore, the period covered by such optional period is not included in the determination of the term of the lease and the lease payments during these periods are similarly excluded from the calculation of right-of-use lease asset and lease liability balances.

The Company recognizes right-of use lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable right-of-use lease payments typically include charges for property taxes, insurance, and variable payments related to non-lease components, including common area maintenance.

Right of use lease expense was approximately $77,600 and $60,000 for the three months ended March 31, 2023 and 2022, respectively. Cash paid for right of use lease was approximately $78,400 and $59,000 for the same periods.

Supplemental balance sheet information related to the right of use leases is as follows:


	March 31, 2023		December 31, 2022

Operating lease asset (included in Other Property and Equipment)	$	821,024	$	978,548

Current portion of lease liability	$	256,975	$	256,975
Long-term lease liability		519,852		547,692
Total right of use lease liabilities	$	776,827	$	804,667

The weighted average remaining term for the Company’s right-of-use leases is 2.8 years.

Maturities of lease liabilities are as follows as of March 31, 2023:


2024	$	323,959
2025		311,849
2026		187,852
2027		37,200
2028		3,100
Total lease payments		863,960
Less imputed interest		(87,133	)
Total lease obligation	$	776,827