LEASES

12 Months Ended

Dec. 31, 2023

LEASES

LEASES

NOTE 15 — LEASES

The Company has ten operating leases, five in DFW, two in Mt. Pleasant, South Carolina, two in Chandler, Arizona and one in Scottsdale, Arizona. The commercial segment has two leases in Chandler, Arizona and two leases in DFW, with a total of approximately 246,000 square feet under lease. The consumer segment has two leases in Mt. Pleasant, South Carolina, three leases in DFW, and one lease in Scottsdale, Arizona, with a total of approximately 28,000 square feet under lease.

All ten leases are triple net leases that pay their proportionate amount of common area maintenance, property taxes and property insurance. Leasing costs for Fiscal 2023 included minimum lease costs of $ 1,911,766 and variable lease costs of $ 834,793, totaling $ 2,751,559. Leasing costs for Fiscal 2022 included minimum lease costs of $ 1,830,175 and variable lease costs of $ 767,353, totaling 2,597,528.

As of December 31, 2023, the weighted average remaining lease term and weighted average discount rate for operating leases was 2.00 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 2023 and Fiscal 2022 was $2,755,496 and $2,564,815, respectively.

Future annual minimum lease payments as of December 31, 2023:

	Operating
	Leases
Consumer
2024		552,414
2025		434,274
2026		355,000
2027		50,114
2028 and thereafter		-
Total minimum lease payments		1,391,802
Less imputed interest		(79,287	)
Consumer Sub-Total		1,312,515
Commercial
2024		1,396,129
2025		1,321,297
2026		474,326
2027		33,454
2028 and thereafter		-
Total minimum lease payments		3,225,206
Less imputed interest		(169,321	)
Commercial Sub-Total		3,055,885
Total		4,368,400
Current portion		1,807,729
	$	2,560,671