XML 34 R24.htm IDEA: XBRL DOCUMENT

OPERATING LEASE RIGHT-OF-USE ASSETS

3 Months Ended

Mar. 31, 2023

NOTE 17 – OPERATING LEASE RIGHT-OF-USE ASSETS

The Company’s right-of-use assets represent arrangements related primarily to office facilities used in the ordinary business operations of the Company and its subsidiaries. In April, 2018, a commercial bank issued an irrevocable standby letter of credit on behalf of the Company to the landlord for $1,075,000 to lease office space. The standby letter of credit was valid for a one-year term and was amended in January 2021 to extend to January 31, 2026. As of March 31, 2023 and December 31, 2022, the Company’s net operating lease right-of-use assets amounted to $3,321,332 and $3,606,398, respectively. The Company had variable lease payments of approximately $24,510 and $18,333 during the three months ended March 31, 2023 and 2022, respectively; which consisted primarily of common area maintenance charges and administrative fees. Operating lease costs for the three months ended March 31, 2023 and 2022 are as follows:


	2023		2022
Operating lease costs	$	397,562	$	391,860
Short term lease costs		—		—
Total operating lease costs	$	397,562	$	391,860

Supplemental information related to operating leases is as follows for lease liabilities as of March 31, 2023 and December 31, 2022:


	2023			2022
Cash paid for amounts included in the measurement of lease liabilities	$	385,254		$	378,010
Weighted average remaining lease term		2.7 years			2.9 years
Weighted average discount rate		5.00	%		5.00	%

Future undiscounted lease payments for operating leases and a reconciliation of these payments to our operating lease liabilities as of March 31, 2023 are as follows:


	Future lease payments		Imputed Interest		Lease Liabilities

Years ending December 31,	Amount
Remainder of 2023	$	1,163,636	$	126,885	$	1,036,751
2024		1,610,844		105,810		1,505,034
2025		1,453,785		28,290		1,425,495
Thereafter		—		—		—
Total future lease payments	$	4,228,265	$	260,985	$	3,967,280