XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.24.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2024
Leases [Abstract] |
Leases | Leases The Company has lease arrangements for properties, vehicles and transportation equipment. Certain leases 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 such determination, the Company considers all relevant economic factors. 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, vehicles and transportation equipment. Lease Cost The table below comprises lease expenses for the three and nine months ended September 30, 2024 and 2023:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Components of total lease cost: |  |  |  |  |  |  |  |
Operating lease expense |  | $ | 1,009,108 |  |  | $ | 697,050 |  |  | $ | 2,775,887 |  |  | $ | 2,319,282 |
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | 1,197,076 |  |  | 1,195,719 |  |  | 3,394,696 |  |  | 2,822,982 |
Interest on lease liabilities |  | 194,099 |  |  | 135,392 |  |  | 560,926 |  |  | 394,443 |
Finance lease expense |  | 1,391,175 |  |  | 1,331,111 |  |  | 3,955,622 |  |  | 3,217,425 |
Short-term lease expense |  | 594,729 |  |  | 452,538 |  |  | 1,484,186 |  |  | 1,156,886 |
Total lease cost |  | $ | 2,995,012 |  |  | $ | 2,480,699 |  |  | $ | 8,215,695 |  |  | $ | 6,693,593 |
Lease Payments The table below presents lease payments for the three and nine months ended September 30, 2024 and 2023:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Components of total lease payments: |  |  |  |  |  |  |  |
Operating lease payment |  | $ | 890,740 |  |  | $ | 697,050 |  |  | $ | 2,669,422 |  |  | $ | 2,319,282 |
Finance lease payment |  | 1,088,265 |  |  | 782,808 |  |  | 3,118,054 |  |  | 2,293,330 |
Total lease payments |  | $ | 1,979,005 |  |  | $ | 1,479,858 |  |  | $ | 5,787,476 |  |  | $ | 4,612,612 |
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 2034. 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. Loss on Lease Remeasurement During the year, the Company reassessed the use of some office spaces, resulting in the termination of two leased office spaces. The Company recorded a loss from remeasurement of operating lease of $6,163 and $13,469 during the three and nine months ended September 30, 2024, respectively. There were no gains or losses recorded relating to remeasurement of operating leases for the three and nine months ended September 30, 2023. Lease Position as of September 30, 2024 Right-of-use assets and lease liabilities for the Company’s operating leases were recorded in the unaudited Condensed Consolidated Balance Sheets as follows:
| September 30, 2024 |  | December 31, 2023
Assets |  |  |
Lease right-of-use assets | $ | 12,489,767 |  |  | $ | 9,580,535 |
Total lease assets | $ | 12,489,767 |  |  | $ | 9,580,535 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 3,776,159 |  |  | $ | 2,773,020 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 9,172,259 |  |  | 7,223,941 |
Total lease liability | $ | 12,948,418 |  |  | $ | 9,996,961 |
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 operating leases as of September 30, 2024:
Weighted average remaining lease term (in years) - operating leases | 3.90
Weighted average discount rate - operating leases | 5.83 | %
Undiscounted Cash Flows Future minimum lease payments under the operating leases as of September 30, 2024 were as follows:
| Operating Leases
2024, remaining | $ | 1,109,227 |
2025 | 4,412,071 |
2026 | 3,604,641 |
2027 | 2,391,396 |
2028 | 1,765,274 |
Thereafter | 1,277,710 |
Total future minimum lease payments | 14,560,319 |
Less effects of discounting | (1,611,901) |
Present value of future minimum lease payments | $ | 12,948,418 |
Finance Leases The Company leases vehicles under non-cancellable finance lease agreements with a liability of $13,990,018 and $11,430,465 as of September 30, 2024 and December 31, 2023, respectively, and accumulated depreciation of $9,896,278 and $11,679,823 as of September 30, 2024 and December 31, 2023, respectively. Loss on Lease Remeasurement During the year, the Company returned a number of leased vehicles, resulting in the termination of contract of these leased vehicles. The Company recorded a loss on remeasurement of finance lease of $0 and $18,583 during the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2023, the Company terminated leased vehicles which resulted in a $4,834 gain on remeasurement of finance leases. Lease Position as of September 30, 2024 Right-of-use assets and lease liabilities for the Company’s finance leases were recorded in the unaudited Condensed Consolidated Balance Sheets as follows:
| September 30, 2024 |  | December 31, 2023
Assets |  |  |
Lease right-of-use assets | $ | 14,605,119 |  |  | $ | 12,003,919 |
Total lease assets | $ | 14,605,119 |  |  | $ | 12,003,919 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 4,435,324 |  |  | $ | 3,534,073 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 9,554,694 |  |  | 7,896,392 |
Total lease liability | $ | 13,990,018 |  |  | $ | 11,430,465 |
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 September 30, 2024:
Weighted average remaining lease term (in years) - finance leases | 3.45
Weighted average discount rate - finance leases | 5.69 | %
Undiscounted Cash Flows Future minimum lease payments under the finance leases as of September 30, 2024 are as follows:
| Finance Leases
2024, remaining | $ | 1,321,296 |
2025 | 5,010,486 |
2026 | 4,175,450 |
2027 | 2,856,492 |
2028 | 1,670,204 |
Thereafter | 428,898 |
Total future minimum lease payments | 15,462,826 |
Less effects of discounting | (1,472,808) |
Present value of future minimum lease payments | $ | 13,990,018 |
Leases | Leases The Company has lease arrangements for properties, vehicles and transportation equipment. Certain leases 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 such determination, the Company considers all relevant economic factors. 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, vehicles and transportation equipment. Lease Cost The table below comprises lease expenses for the three and nine months ended September 30, 2024 and 2023:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Components of total lease cost: |  |  |  |  |  |  |  |
Operating lease expense |  | $ | 1,009,108 |  |  | $ | 697,050 |  |  | $ | 2,775,887 |  |  | $ | 2,319,282 |
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | 1,197,076 |  |  | 1,195,719 |  |  | 3,394,696 |  |  | 2,822,982 |
Interest on lease liabilities |  | 194,099 |  |  | 135,392 |  |  | 560,926 |  |  | 394,443 |
Finance lease expense |  | 1,391,175 |  |  | 1,331,111 |  |  | 3,955,622 |  |  | 3,217,425 |
Short-term lease expense |  | 594,729 |  |  | 452,538 |  |  | 1,484,186 |  |  | 1,156,886 |
Total lease cost |  | $ | 2,995,012 |  |  | $ | 2,480,699 |  |  | $ | 8,215,695 |  |  | $ | 6,693,593 |
Lease Payments The table below presents lease payments for the three and nine months ended September 30, 2024 and 2023:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Components of total lease payments: |  |  |  |  |  |  |  |
Operating lease payment |  | $ | 890,740 |  |  | $ | 697,050 |  |  | $ | 2,669,422 |  |  | $ | 2,319,282 |
Finance lease payment |  | 1,088,265 |  |  | 782,808 |  |  | 3,118,054 |  |  | 2,293,330 |
Total lease payments |  | $ | 1,979,005 |  |  | $ | 1,479,858 |  |  | $ | 5,787,476 |  |  | $ | 4,612,612 |
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 2034. 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. Loss on Lease Remeasurement During the year, the Company reassessed the use of some office spaces, resulting in the termination of two leased office spaces. The Company recorded a loss from remeasurement of operating lease of $6,163 and $13,469 during the three and nine months ended September 30, 2024, respectively. There were no gains or losses recorded relating to remeasurement of operating leases for the three and nine months ended September 30, 2023. Lease Position as of September 30, 2024 Right-of-use assets and lease liabilities for the Company’s operating leases were recorded in the unaudited Condensed Consolidated Balance Sheets as follows:
| September 30, 2024 |  | December 31, 2023
Assets |  |  |
Lease right-of-use assets | $ | 12,489,767 |  |  | $ | 9,580,535 |
Total lease assets | $ | 12,489,767 |  |  | $ | 9,580,535 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 3,776,159 |  |  | $ | 2,773,020 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 9,172,259 |  |  | 7,223,941 |
Total lease liability | $ | 12,948,418 |  |  | $ | 9,996,961 |
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 operating leases as of September 30, 2024:
Weighted average remaining lease term (in years) - operating leases | 3.90
Weighted average discount rate - operating leases | 5.83 | %
Undiscounted Cash Flows Future minimum lease payments under the operating leases as of September 30, 2024 were as follows:
| Operating Leases
2024, remaining | $ | 1,109,227 |
2025 | 4,412,071 |
2026 | 3,604,641 |
2027 | 2,391,396 |
2028 | 1,765,274 |
Thereafter | 1,277,710 |
Total future minimum lease payments | 14,560,319 |
Less effects of discounting | (1,611,901) |
Present value of future minimum lease payments | $ | 12,948,418 |
Finance Leases The Company leases vehicles under non-cancellable finance lease agreements with a liability of $13,990,018 and $11,430,465 as of September 30, 2024 and December 31, 2023, respectively, and accumulated depreciation of $9,896,278 and $11,679,823 as of September 30, 2024 and December 31, 2023, respectively. Loss on Lease Remeasurement During the year, the Company returned a number of leased vehicles, resulting in the termination of contract of these leased vehicles. The Company recorded a loss on remeasurement of finance lease of $0 and $18,583 during the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2023, the Company terminated leased vehicles which resulted in a $4,834 gain on remeasurement of finance leases. Lease Position as of September 30, 2024 Right-of-use assets and lease liabilities for the Company’s finance leases were recorded in the unaudited Condensed Consolidated Balance Sheets as follows:
| September 30, 2024 |  | December 31, 2023
Assets |  |  |
Lease right-of-use assets | $ | 14,605,119 |  |  | $ | 12,003,919 |
Total lease assets | $ | 14,605,119 |  |  | $ | 12,003,919 |
Liabilities |  |  |
Current liabilities: |  |  |
Lease liability - current portion | $ | 4,435,324 |  |  | $ | 3,534,073 |
Noncurrent liabilities: |  |  |
Lease liability, net of current portion | 9,554,694 |  |  | 7,896,392 |
Total lease liability | $ | 13,990,018 |  |  | $ | 11,430,465 |
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 September 30, 2024:
Weighted average remaining lease term (in years) - finance leases | 3.45
Weighted average discount rate - finance leases | 5.69 | %
Undiscounted Cash Flows Future minimum lease payments under the finance leases as of September 30, 2024 are as follows:
| Finance Leases
2024, remaining | $ | 1,321,296 |
2025 | 5,010,486 |
2026 | 4,175,450 |
2027 | 2,856,492 |
2028 | 1,670,204 |
Thereafter | 428,898 |
Total future minimum lease payments | 15,462,826 |
Less effects of discounting | (1,472,808) |
Present value of future minimum lease payments | $ | 13,990,018 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration