LEASES

12 Months Ended

Dec. 31, 2022

LEASES

LEASES

NOTE 15 — LEASES

The Company has nine operating leases, five in DFW, two in Mount Pleasant, South Carolina and two in Chandler, Arizona. ECHG has two leases in Chandler, Arizona and two leases in DFW, with a total of approximately 246,000 square feet under lease. DGSE has two leases in Charleston, South Carolina and three leases in DFW, with a total of approximately 26,000 square feet under lease.

All nine leases are triple net leases that pay their proportionate amount of common area maintenance, property taxes and property insurance. Leasing costs for Fiscal 2022 and Fiscal 2021 was $2,597,528 and $2,109,104, respectively. These lease costs consist of a combination of minimum lease payments and variable lease costs.

As of December 31, 2022, the weighted average remaining lease term and weighted average discount rate for operating leases was 3.29 years and 4.4%, respectively. The Company’s future operating lease obligations that have not yet commenced are immaterial. The cash paid for operating lease liabilities for Fiscal 2022 and Fiscal 2021 was $2,564,815 and $2,300,630, respectively.

Future annual minimum lease payments as of December 31, 2022:

	Operating
	Leases
DGSE
2023		541,984
2024		552,414
2025		412,269
2026		355,000
2027 and thereafter		50,114
Total minimum lease payments		1,911,781
Less imputed interest		(146,921	)
DGSE Sub-Total		1,764,860
ECHG
2023		1,357,381
2024		1,396,129
2025		1,321,297
2026		474,326
2027 and thereafter		33,454
Total minimum lease payments		4,582,587
Less imputed interest		(292,050	)
ECHG Sub-Total		4,290,537
Total		6,055,397
Current portion		1,686,997
	$	4,368,400