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Leases

6 Months Ended

Jun. 30, 2023

Note 9 - Leases

As a lessee, the Company leases its corporate office headquarters in Tulsa, Oklahoma and one field office. 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 $164,000 and $122,000 for the six months ended June 30, 2023 and 2022, respectively. Cash paid for right-of-use leases was approximately $164,000 and $122,000 for the same periods.

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

Schedule of right of use leases
	June 30, 2023		December 31, 2022
Operating lease asset - net (included in Other Property and Equipment)	$	845,351	$	776,219

Current portion of lease liability	$	310,422	$	256,975
Long-term lease liability		513,853		547,692
Total right-of-use lease liabilities	$	824,275	$	804,667

The weighted average remaining term for the Company’s right-of-use leases is 2.6 years.

Maturities of lease liabilities are as follows as of June 30, 2023:


Year 1	$	365,068
Year 2		338,259
Year 3		180,747
Year 4		31,000
Year 5		—
Total lease payments		915,074
Less imputed interest		(90,799	)
Total lease obligation	$	824,275