RIGHT OF USE ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2023

As of December 31, 2023 and 2022, the Company has seven operating type leases with an imputed annual interest rate of 8%. Each of the Company's operating type leases are utilized as office space with one lease also including a warehouse for inventory. Five of the leases were acquired by the Company in connection with the acquisitions of 2WR, Emerald, and DVO. The remaining lease terms range from less than one year to 5 years, as of December 31, 2023. As of December 31, 2023 and 2022, right of use assets were $2,041,217 and $2,618,825, respectively, and for the years ended December 31, 2023 and 2022 lease expense was $460,347 and $192,955, respectively.

The following is a summary of operating right-of-use lease liabilities:


	As of December 31,
	2023		2022
Operating lease liabilities related to right of use liabilities	$	2,087,503	$	2,645,598
Less current portion	(707,141)		(600,816)
Long term	$	1,380,362	$	2,044,782

The following is a schedule showing total future minimum lease payments for the Company's operating leases:


Year ending December 31,	Minimum Lease Payments
2024	$	754,076
2025	573,133
2026	404,751
2027	346,812
2028	253,415
Thereafter	82,488
Total minimum lease payments	$	2,414,675

Less: Amount representing interest	$	(327,172)
Net lease obligations	$	2,087,503