XML 34 R17.htm IDEA: XBRL DOCUMENT

Leases

3 Months Ended

Mar. 31, 2024

Note 11 – Leases

We have entered into operating and finance leases primarily for real estate and equipment rental. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating and finance leases are listed as separate line items on our consolidated balance sheets and represent our right to use the underlying asset for the lease term. Our obligation to make lease payments is also listed as separate line items on our consolidated balance sheets. As of March 31, 2024 and December 31, 2023, total operating and financed right-of-use assets were $1,084,113 and $53,911, and $805,786 and $72,560 respectively.

As of March 31, 2024 and 2023, we recorded $18,649 and $30,642, respectively, in amortization expense related to finance leases.

In May 2023, we entered into an agreement to lease 4,128 square feet of office space in San Jose, CA commencing on September 1, 2023. The lease has a term of sixty-five months with an abatement period of five months and will cost approximately $208,000 during its first year. Thereafter, the lease payments increase by 3% annually.

In January 2024, we amended and renewed our lease at our corporate headquarters in Little Rock, Arkansas. The lease was extended for thirty-six months commencing on February 1, 2024 and expiring on January 31, 2027 and will cost approximately $127,000 during its first year. Thereafter, the lease payments increase by 2% annually.

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments.

Information related to our operating lease liabilities are as follows:

	For the Three Months Ended March 31, 2024
Cash paid for operating lease liabilities	$	56,364
Weighted-average remaining lease term	3.4 years
Weighted-average discount rate		10.5	%

Minimum future lease payments ended March 31, 2024
2024 (remainder of year)		255,719
2025		349,194
2026		354,565
2027		237,867
2028		233,727
Thereafter		19,525
		1,450,597
Less imputed interest		(280,701	)
Total lease liabilities	$	1,169,896

Information related to our financed lease liabilities are as follows:

	For the Three Months Ended March 31, 2024
Cash paid for finance lease liabilities	$	17,350
Weighted-average remaining lease term	1.2 years
Weighted-average discount rate		6.25	%

Minimum future lease payments ended March 31, 2024
2024 (remainder of year)		33,057
2025		18,491
		51,548
Less imputed interest		(1,244	)
Total lease liabilities	$	50,304