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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | Leases Operating Leases The Company is obligated to make rental payments under non-cancellable operating leases for office, dispatch station space and transportation equipment, expiring at various dates through 2032. Under the terms of the leases, the Company is also obligated for its proportionate share of real estate taxes, insurance and maintenance costs of the property. The Company is required to hold certain funds in restricted cash and cash equivalents accounts under some of these agreements. Certain leases for property and transportation equipment contain options to purchase, extend or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the right-of-use asset and lease obligations for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and whether the optional period and payments should be included in the calculation of the associated right-of-use asset and lease obligation. In making the determination of such judgment, the Company considers all relevant economic factors that would require whether to exercise or not exercise the option. The Company’s lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings and comparable quality and derived imputed rates, which were used to discount its real estate lease liabilities. The Company used estimated borrowing rates of 6% on January 1, 2019 for all leases that commenced prior to that date for office spaces and transportation equipment. Lease Costs The table below comprises lease expenses for the years ended December 31, 2023, 2022 and 2021, respectively:
|  | December 31,
Components of total lease cost: |  | 2023 |  | 2022 |  | 2021
Operating lease expense |  | $ | 3,418,134 |  |  | $ | 2,294,636 |  |  | $ | 1,993,984 |
Short-term lease expense |  | 1,678,487 |  |  | 1,201,622 |  |  | 1,012,260 |
Total lease cost - operating leases |  | $ | 5,096,621 |  |  | $ | 3,496,258 |  |  | $ | 3,006,244 |
Lease Position as of December 31, 2023 Right-of-use lease assets and lease liabilities for the Company’s operating leases were recorded in the Consolidated Balance Sheets as follows:
| December 31, 2023 |  | December 31, 2022
Assets |  |  |
Lease right-of-use assets | $ | 9,580,535 |  |  | $ | 9,074,277 |
Total lease assets | $ | 9,580,535 |  |  | $ | 9,074,277 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 2,773,020 |  |  | $ | 2,325,024 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 7,223,941 |  |  | 7,040,982 |
Total lease liability | $ | 9,996,961 |  |  | $ | 9,366,006 |
Lease Terms and Discount Rate
Weighted average remaining lease term (in years) - operating leases | 3.67
Weighted average discount rate - operating leases | 5.71 | %
Undiscounted Cash Flows Future minimum lease payments under the operating leases as of December 31, 2023 are as follows:
| Operating Leases
2024 | $ | 3,271,821 |
2025 | 3,305,703 |
2026 | 2,429,393 |
2027 | 1,219,709 |
2028 | 597,566 |
Thereafter | 318,901 |
Total future minimum lease payments | 11,143,093 |
Less effects of discounting | (1,146,132) |
Present value of future minimum lease payments | $ | 9,996,961 |
Operating lease expenses approximated $3,418,134, $2,294,636 and $1,993,984 for the years ended December 31, 2023, 2022 and 2021, respectively. For the years ended December 31, 2023, 2022, 2021, the Company made $3,287,125, $2,294,636, $1,993,984 of fixed cash payments related to operating leases and $4,270,553, $2,985,568, $2,741,784 related to finance leases, respectively. Finance Leases The Company leases vehicles under non-cancelable finance lease agreements with a liability of $11,430,465, $8,646,803 and $10,139,410 for the years ended December 31, 2023, 2022 and 2021, respectively (accumulated depreciation of $11,679,823, $7,906,966 and $7,095,242 as of December 31, 2023, 2022 and 2021, respectively). Depreciation expenses for the vehicles under non-cancelable lease agreements amounted to $6,352,754, $3,236,418 and $2,913,925 for the years ended December 31, 2023, 2022 and 2021, respectively. Gain on Lease Remeasurement In June 2022, the Company reassessed its finance lease estimates relating to vehicle mileage and residual value. As a result, the Company determined to purchase the vehicles at the end of the leases, which resulted in a gain of $1.4 million recorded as gains from lease accounting on the Consolidated Statements of Operations and Comprehensive Income. Lease Payments The table below comprises lease payments for the years ended December 31, 2023, 2022 and 2021, respectively:
|  | Year Ended December 31,
Components of total lease cost: |  | 2023 | 2022 |  | 2021
Finance lease payment |  | $ | 4,270,553 |  | $ | 2,985,568 |  |  | $ | 2,741,784 |
Short-term lease payment |  | — |  | — |  |  | — |
Total lease payments |  | $ | 4,270,553 |  | $ | 2,985,568 |  |  | $ | 2,741,784 |
Lease Position as of December 31, 2023 Right-of-use lease assets and lease liabilities for the Company’s finance leases were recorded in the Consolidated Balance Sheets as follows:
| December 31, 2023 |  | December 31, 2022
Assets |  |  |
Lease right-of-use assets | $ | 12,003,919 |  |  | $ | 9,039,663 |
Total lease assets | $ | 12,003,919 |  |  | $ | 9,039,663 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 3,534,073 |  |  | $ | 2,732,639 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 7,896,392 |  |  | 5,914,164 |
Total lease liability | $ | 11,430,465 |  |  | $ | 8,646,803 |
Lease Terms and Discount Rate The table below presents certain information related to the weighted average remaining lease term and the weighted average discount rate for the Company’s finance leases as of December 31, 2023:
Weighted average remaining lease term (in years) - finance leases | 3.37
Weighted average discount rate - finance leases | 5.42 | %
Undiscounted Cash Flows Future minimum lease payments under the finance leases as of December 31, 2023 are as follows:
| Finance Leases
2024 | $ | 4,072,021 |
2025 | 3,745,030 |
2026 | 2,868,368 |
2027 | 1,495,766 |
2028 | 352,811 |
Thereafter | — |
Total future minimum lease payments | 12,533,996 |
Less effects of discounting | (1,103,531) |
Present value of future minimum lease payments | $ | 11,430,465 |
Leases | Leases Operating Leases The Company is obligated to make rental payments under non-cancellable operating leases for office, dispatch station space and transportation equipment, expiring at various dates through 2032. Under the terms of the leases, the Company is also obligated for its proportionate share of real estate taxes, insurance and maintenance costs of the property. The Company is required to hold certain funds in restricted cash and cash equivalents accounts under some of these agreements. Certain leases for property and transportation equipment contain options to purchase, extend or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the right-of-use asset and lease obligations for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and whether the optional period and payments should be included in the calculation of the associated right-of-use asset and lease obligation. In making the determination of such judgment, the Company considers all relevant economic factors that would require whether to exercise or not exercise the option. The Company’s lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings and comparable quality and derived imputed rates, which were used to discount its real estate lease liabilities. The Company used estimated borrowing rates of 6% on January 1, 2019 for all leases that commenced prior to that date for office spaces and transportation equipment. Lease Costs The table below comprises lease expenses for the years ended December 31, 2023, 2022 and 2021, respectively:
|  | December 31,
Components of total lease cost: |  | 2023 |  | 2022 |  | 2021
Operating lease expense |  | $ | 3,418,134 |  |  | $ | 2,294,636 |  |  | $ | 1,993,984 |
Short-term lease expense |  | 1,678,487 |  |  | 1,201,622 |  |  | 1,012,260 |
Total lease cost - operating leases |  | $ | 5,096,621 |  |  | $ | 3,496,258 |  |  | $ | 3,006,244 |
Lease Position as of December 31, 2023 Right-of-use lease assets and lease liabilities for the Company’s operating leases were recorded in the Consolidated Balance Sheets as follows:
| December 31, 2023 |  | December 31, 2022
Assets |  |  |
Lease right-of-use assets | $ | 9,580,535 |  |  | $ | 9,074,277 |
Total lease assets | $ | 9,580,535 |  |  | $ | 9,074,277 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 2,773,020 |  |  | $ | 2,325,024 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 7,223,941 |  |  | 7,040,982 |
Total lease liability | $ | 9,996,961 |  |  | $ | 9,366,006 |
Lease Terms and Discount Rate
Weighted average remaining lease term (in years) - operating leases | 3.67
Weighted average discount rate - operating leases | 5.71 | %
Undiscounted Cash Flows Future minimum lease payments under the operating leases as of December 31, 2023 are as follows:
| Operating Leases
2024 | $ | 3,271,821 |
2025 | 3,305,703 |
2026 | 2,429,393 |
2027 | 1,219,709 |
2028 | 597,566 |
Thereafter | 318,901 |
Total future minimum lease payments | 11,143,093 |
Less effects of discounting | (1,146,132) |
Present value of future minimum lease payments | $ | 9,996,961 |
Operating lease expenses approximated $3,418,134, $2,294,636 and $1,993,984 for the years ended December 31, 2023, 2022 and 2021, respectively. For the years ended December 31, 2023, 2022, 2021, the Company made $3,287,125, $2,294,636, $1,993,984 of fixed cash payments related to operating leases and $4,270,553, $2,985,568, $2,741,784 related to finance leases, respectively. Finance Leases The Company leases vehicles under non-cancelable finance lease agreements with a liability of $11,430,465, $8,646,803 and $10,139,410 for the years ended December 31, 2023, 2022 and 2021, respectively (accumulated depreciation of $11,679,823, $7,906,966 and $7,095,242 as of December 31, 2023, 2022 and 2021, respectively). Depreciation expenses for the vehicles under non-cancelable lease agreements amounted to $6,352,754, $3,236,418 and $2,913,925 for the years ended December 31, 2023, 2022 and 2021, respectively. Gain on Lease Remeasurement In June 2022, the Company reassessed its finance lease estimates relating to vehicle mileage and residual value. As a result, the Company determined to purchase the vehicles at the end of the leases, which resulted in a gain of $1.4 million recorded as gains from lease accounting on the Consolidated Statements of Operations and Comprehensive Income. Lease Payments The table below comprises lease payments for the years ended December 31, 2023, 2022 and 2021, respectively:
|  | Year Ended December 31,
Components of total lease cost: |  | 2023 | 2022 |  | 2021
Finance lease payment |  | $ | 4,270,553 |  | $ | 2,985,568 |  |  | $ | 2,741,784 |
Short-term lease payment |  | — |  | — |  |  | — |
Total lease payments |  | $ | 4,270,553 |  | $ | 2,985,568 |  |  | $ | 2,741,784 |
Lease Position as of December 31, 2023 Right-of-use lease assets and lease liabilities for the Company’s finance leases were recorded in the Consolidated Balance Sheets as follows:
| December 31, 2023 |  | December 31, 2022
Assets |  |  |
Lease right-of-use assets | $ | 12,003,919 |  |  | $ | 9,039,663 |
Total lease assets | $ | 12,003,919 |  |  | $ | 9,039,663 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 3,534,073 |  |  | $ | 2,732,639 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 7,896,392 |  |  | 5,914,164 |
Total lease liability | $ | 11,430,465 |  |  | $ | 8,646,803 |
Lease Terms and Discount Rate The table below presents certain information related to the weighted average remaining lease term and the weighted average discount rate for the Company’s finance leases as of December 31, 2023:
Weighted average remaining lease term (in years) - finance leases | 3.37
Weighted average discount rate - finance leases | 5.42 | %
Undiscounted Cash Flows Future minimum lease payments under the finance leases as of December 31, 2023 are as follows:
| Finance Leases
2024 | $ | 4,072,021 |
2025 | 3,745,030 |
2026 | 2,868,368 |
2027 | 1,495,766 |
2028 | 352,811 |
Thereafter | — |
Total future minimum lease payments | 12,533,996 |
Less effects of discounting | (1,103,531) |
Present value of future minimum lease payments | $ | 11,430,465 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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