Financing Lease Obligations

3 Months Ended

Mar. 31, 2023

Financing Lease Obligations

Financing Lease Obligations

Note 7 – Financing Lease Obligations

Lease obligations at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31,			December 31,
	2023			2022
Lease obligations	$	12,516,741		$	13,675,268
Less current portion		(4,909,003	)		(4,829,349	)
Long-term portion	$	7,607,738		$	8,845,919

A rollforward of lease obligations from December 31, 2022 to March 31, 2023 is below:

Lease obligations, December 31, 2022	$	13,675,268
New lease obligations		0
Disposal of leased vehicles		(0	)
Lease obligation converted to note payable		-
Payments on lease obligations		(1,158,527	)
Lease obligations, March 31, 2023	$	12,516,741

Future payments under lease obligations are as follows:

Years Ending December 31,
2023	$	5,649,828
2024		6,253,335
2025		2,845,382
2026		636,269
2027		0
Total payments		15,384,813
Amount representing interest		(2,868,072	)
Lease obligation, net	$	12,516,741

The lease balances are remaining principal balances of each leasing as of March 31, 2023. The disclosure above identifies the future interest payments to represent the full lease payment obligations. The current treatment is a material deviation from GAAP and ASC 842 but consistent with prior year treatment. An ASC 842 study is planned for 2023 and the Company expects to modify and adjust to comply with ASC 842 by fiscal year end 2023.