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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 11. Commitments and Contingencies From time to time we are involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. Although we cannot predict the outcome of such matters, currently we have no reason to believe the disposition of any current matter could reasonably be expected to have a material adverse impact on our financial position, results of operations or the ability to carry on any of our business activities. Operating Leases For each of the below listed leases, management has determined it will utilize the base rental period and have not considered any renewal periods. Schedule of Operating Lease
Location |  | Square Feet |  |  | Monthly Rent |  |  | Lease Expiry
Columbus, OH |  |  | 6,000 |  |  | $ | 5,100 |  |  | December 31, 2028
Madison Heights, MI |  |  | 36,000 |  |  | $ | 43,185 |  |  | August 31, 2026
Sterling Heights, MI |  |  | 37,000 |  |  | $ | 21,072 |  |  | April 30, 2028
Traverse City, MI |  |  | 5,200 |  |  | $ | 4,500 |  |  | January 31, 2024
Temporary space |  |  |  |  |  |  |  |  |  |
Madison Heights, MI |  |  | 3,200 |  |  | $ | 1,605 |  |  | month to month
Vehicles |  |  |  |  |  |  |  |  |  |
various |  |  | n/a |  |  | $ | 2,708 |  |  | September 30, 2028
The following table sets forth the future minimum lease payments under our leases: Schedule of Future Rental Payment for Operating Lease
For the twelve months ending September 30, |  | Finance Leases |  |  | Operating Leases |
2024 |  | $ | 67,358 |  |  | $ | 916,353 |
2025 |  |  | 67,358 |  |  |  | 892,047 |
2026 |  |  | 63,306 |  |  |  | 855,585 |
2027 |  |  | 49,500 |  |  |  | 353,662 |
2028 |  |  | 37,228 |  |  |  | 238,947 |
Thereafter |  |  | - |  |  |  | 17,550 |
Less Imputed Interest |  |  | (47,094 | ) |  |  | (429,243 | )
Less Short-term lease payments |  |  | - |  |  |  | (4,814 | )
Total |  | $ | 237,656 |  |  | $ | 2,840,087 |
The following table summarizes the components of lease expense: Summary of Components of Lease Expense
For the three months ending September 30, |  | 2023 |  |  | 2022 |
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of ROU asset |  | $ | 13,221 |  |  | $ | - |
Interest on lease liabilities |  |  | 5,036 |  |  |  | - |
Operating lease expense |  |  | 238,864 |  |  |  | 243,301 |
Short-term lease expense |  |  | 4,814 |  |  |  | 4,814 |
For the nine months ending September 30, |  | 2023 |  |  | 2022 |
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of ROU asset |  | $ | 28,181 |  |  | $ | - |
Interest on lease liabilities |  |  | 11,462 |  |  |  | - |
Operating lease expense |  |  | 715,176 |  |  |  | 729,902 |
Short-term lease expense |  |  | 14,441 |  |  |  | 14,441 |
The following tables set forth additional information pertaining to our leases: Schedule of Additional Information Pertaining to Leases
For the nine months ending September 30, |  | 2023 |  |  | 2022 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Financing cash flows from finance leases (interest) |  | $ | 11,462 |  |  | $ | - |
Financing cash flows from finance leases (principal) |  |  | 23,167 |  |  |  | - |
Operating cash flows from operating leases |  |  | 531,567 |  |  |  | 318,030 |
Weighted average remaining lease term – finance leases |  |  | 4.4 years |  |  |  | - |
Weighted average remaining lease term – operating leases |  |  | 3.8 years |  |  |  | 4.7 years |
Weighted average discount rate – finance leases |  |  | 8.88 | % |  |  | - |
Weighted average discount rate – operating leases |  |  | 6.93 | % |  |  | 6.99 | %
Schedule of Operating and Finance Leases
|  | September 30, 2023 |  |  | December 31, 2022 |
Operating leases: |  |  |  |  |  |  |  |
Right-of-use assets, operating |  | $ | 2,716,512 |  |  | $ | 3,200,191 |
Lease liabilities, operating – current |  |  | 713,638 |  |  |  | 692,074 |
Lease liabilities, operating – net of current |  |  | 2,126,449 |  |  |  | 2,624,608 |
Total operating lease liabilities |  | $ | 2,840,087 |  |  | $ | 3,316,682 |
Finance leases: |  |  |  |  |  |  |  |
Right-of-use asset, finance |  | $ | 261,892 |  |  | $ | 160,990 |
Accumulated amortization |  |  | (28,181 | ) |  |  | (6,708 | )
Right-of-use asset, finance, net |  | $ | 233,711 |  |  | $ | 154,282 |
Lease liabilities, finance – current |  | $ | 48,802 |  |  | $ | 22,493 |
Lease liabilities, finance – net of current |  |  | 188,854 |  |  |  | 133,131 |
Total finance lease liability |  | $ | 237,656 |  |  | $ | 155,624 |

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