Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.21.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and ContingenciesLeases
The table below summarizes the components of lease expense and income statement location for the three and six months ended June 30, 2021 and 2020:
Line Item in the
Company’s Consolidated
Income Statements
Three Months Ended
June 30, 2021
Three Months Ended June 30, 2020 Six Months Ended
June 30, 2021
Six Months Ended
June 30, 2020
Finance lease costs:
Amortization of assets Depreciation and amortization $ 21,797  $ 19,620  $ 41,710  $ 30,173 
Interest on lease liabilities Other expense, net 2,470  3,332  5,093  5,712 
Total finance lease costs 24,267  22,952  46,803  35,885 
Operating lease costs General and administrative expenses 1,171,414  890,777  2,076,172  1,767,112 
Total lease costs $ 1,195,681  $ 913,729  $ 2,122,975  $ 1,802,997 
Supplemental information and balance sheet location related to leases is as follows:
June 30, 2021 December 31, 2020
Operating Leases:
Operating lease right-of -use asset $ 15,232,136  $ 11,581,435 
Operating lease liability - current portion $ 3,605,458  $ 2,918,140 
Operating lease liability - net of current portion 14,297,918  10,632,672 
Total operating lease liability $ 17,903,376  $ 13,550,812 
Finance Leases:
Property and equipment, at cost $ 267,252  $ 282,027 
Less accumulated amortization (104,344) (92,549)
Property and equipment, net $ 162,908  $ 189,478 
Finance lease liability - current portion 79,752  70,507 
Finance lease liability - net of current portion 99,772  132,469 
Total finance lease liabilities $ 179,524  $ 202,976 
Weighted average remaining lease term (in years):
Operating leases 5.1 4.7
Finance lease 3.7 4.1
Weighted average discount rate:
Operating leases 8.2  % 8.5  %
Finance leases 5.2  % 5.3  %
Supplemental cash flow information related to leases is as follows:
Six Months Ended
June 30, 2021
Six Months Ended
June 30, 2020
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases $ 1,998,470  $ 1,600,783 
Operating cash flows from finance leases 5,093  5,712 
Financing cash flows from finance leases 38,593  23,509 
Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease $ 4,769,494  $ 919,607 
Finance lease 15,140  201,423 
Maturities of lease liabilities as of June 30, 2021 are as follows:
Operating Leases Finance Lease
2021 (remainder) $ 2,399,281  $ 45,649 
2022 4,941,878  54,371 
2023 4,234,917  27,600 
2024 3,651,788  27,600 
2025 3,202,506  27,600 
Thereafter 3,485,380  11,500 
Total lease payments $ 21,915,750  $ 194,320 
Less: Imputed interest (4,012,374) (14,796)
Total lease obligations 17,903,376  179,524 
Less: Current obligations (3,605,458) (79,752)
Long-term lease obligation $ 14,297,918  $ 99,772 
During the second 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 $1.6 million. These leases are expected to commence during the third and the fourth quarter of 2021, 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.