Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

(11)      Leases

The Company leases office and warehouse space under operating leases. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease, right-of-use assets, and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates with the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgement. The company determines its incremental borrowing rate for each lease using its then-current borrowing rate. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal options periods used in determining the operating lease term based upon its assessment at the inception of the operating lease. The option to renew the lease may be automatic, at the option of the Company, or mutually agreed to between the landlord and the Company. Once the facility lease term has begun, the present value of the aggregate future minimum lease payments is recorded as a right-of-use asset. Lease expense is recognized on a straight-line basis over the term of the lease.

	Nine Months Ended September 30,
	2022			2021
Operating lease costs	$	213,382		$	192,833
Short-term operating lease costs		7,996			9,951
Financing lease expense:
Amortization of right-of-use assets		6,331			5,771
Interest on lease liabilities		899			1,459
Total financing lease expense		7,230			7,230
Total lease expense	$	228,608		$	210,014
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—		$	1,603
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	—
Weighted-average remaining lease term (years) - operating leases		12.3			13.3
Weighted-average remaining lease term (years) - financing leases		1.6			2.4
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		8.22	%		8.70	%

	Operating			Financing
2022 (excluding the nine-months ended September 30, 2022)	$	71,777		$	2,410
2023		287,108			5,881
2024		287,108			2,929
2025		287,108			—
2026		287,108			—
Thereafter		2,312,301			—
Total minimum operating lease obligations		3,532,510			11,220
Less-amounts representing interest		(1,137,162	)		(664	)
Present value of minimum operating lease obligations		2,395,348			10,556
Current maturities		(129,376	)		(6,981	)
Lease obligations, net of current maturities	$	2,265,972		$	3,575