Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Leases

The table below summarizes the components of lease expense and income statement location for the three and nine months ended September 30, 2021 and 2020:


	Line Item in the Company’s Condensed Consolidated Income Statements	Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Finance lease costs:
Amortization of assets	Depreciation and amortization	$	21,797	$	18,850	$	63,506	$	49,024
Interest on lease liabilities	Other expense, net	2,132		3,066		7,225		8,779
Total finance lease costs		23,929		21,916		70,731		57,803
Operating lease costs	General and administrative expenses	1,201,547		891,603		3,221,145		2,659,569
Total lease costs		$	1,225,476	$	913,519	$	3,291,876	$	2,717,372

Supplemental information and balance sheet location related to leases is as follows:


	September 30, 2021			December 31, 2020
Operating Leases:
Operating lease right-of -use asset	$	15,903,649		$	11,581,435
Operating lease liability - current portion	$	3,874,451		$	2,918,140
Operating lease liability - net of current portion	14,977,426			10,632,672
Total operating lease liability	$	18,851,877		$	13,550,812
Finance Leases:
Property and equipment, at cost	$	267,252		$	282,027
Less accumulated amortization	(126,140)			(92,549)
Property and equipment, net	$	141,112		$	189,478
Finance lease liability - current portion	64,944			70,507
Finance lease liability - net of current portion	93,887			132,469
Total finance lease liabilities	$	158,831		$	202,976
Weighted average remaining lease term (in years):
Operating leases	5.3			4.7
Finance lease	3.6			4.1
Weighted average discount rate:
Operating leases	7.7		%	8.5		%
Finance leases	5.1		%	5.3		%

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	3,069,797	$	2,517,613
Operating cash flows from finance leases	7,225		8,779
Financing cash flows from finance leases	59,285		40,168

Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease	$	6,232,875	$	919,607
Finance lease	15,140		201,423

Maturities of lease liabilities as of September 30, 2021 are as follows:


	Operating Leases		Finance Lease
2021 (remainder)	$	1,242,724	$	22,824
2022	5,149,264		54,371
2023	4,491,076		27,600
2024	3,915,068		27,600
2025	3,470,504		27,600
Thereafter	4,445,546		11,500
Total lease payments	$	22,714,182	$	171,495
Less: Imputed interest	(3,862,305)		(12,664)
Total lease obligations	18,851,877		158,831
Less: Current obligations	(3,874,451)		(64,944)
Long-term lease obligation	$	14,977,426	$	93,887

During the third quarter of 2021, the Company entered into various operating leases that have not yet commenced for spaces to be used by the Company’s new corporate clinics. These leases are expected to result in additional ROU assets and liabilities of approximately $1.4 million. These leases are expected to commence during the fourth quarter of 2021 and the first quarter of 2022, with lease terms of five to ten years.

Litigation

In the normal course of business, the Company is party to litigation from time to time. The Company maintains insurance to cover certain actions and believes that resolution of such litigation will not have a material adverse effect on the Company. Such matters are subject to many uncertainties and to outcomes of which the financial impacts are not predictable with assurance and that may not be known for extended periods of time. A liability is established once management determines a loss is probable and an amount that can be reasonably estimated.