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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

9. 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.

 

 

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.

 

Location  Square Feet   Monthly Rent   Lease Expiry
Columbus, OH   6,000   $5,250   December 31, 2028
Madison Heights, MI   36,000   $44,048   August 31, 2026
Sterling Heights, MI   37,000   $21,692   April 30, 2028
Traverse City, MI   5,200   $5,100   January 31, 2026
              
Temporary space             
Madison Heights, MI   3,200   $1,605   month to month
              
Vehicles             
various   n/a    $4,901   September 30, 2028

 

The following table sets forth the future minimum lease payments under our leases:

 

For the twelve months ending March 31,  Finance Leases   Operating Leases 
2025  $89,954   $951,885 
2026   89,954    950,991 
2027   71,204    578,184 
2028   63,855    358,282 
2029   39,194    76,821 
Thereafter   1,883    - 
Less Imputed Interest   (55,024)   (333,209)
   $301,020   $2,582,954 

 

 

The following table summarizes the components of lease expense:

 

For the three months ending March 31,  2024   2023 
Finance lease expense:          
Amortization of ROU asset  $16,768   $6,709 
Interest on lease liabilities   6,468    2,832 
Operating lease expense   234,439    237,449 
Short-term lease expense   4,814    4,814 

 

The following tables set forth additional information pertaining to our leases:

 

For the three months ending March 31,  2024   2023 
Cash paid for amounts included in the measurement of lease liabilities:          
Financing cash flows from finance leases (interest)  $6,468   $2,832 
Financing cash flows from finance leases (principal)   14,138    5,467 
Operating cash flows from operating leases   187,724    170,759 
ROU assets obtained in exchange for new finance lease liabilities   89,289    40,529 
Weighted average remaining lease term – finance leases   4.3 years    5.5 years 
Weighted average remaining lease term – operating leases   3.3 years    4.2 years 
Weighted average discount rate – finance leases   9.75%   7.50%
Weighted average discount rate – operating leases   6.98%   6.97%