Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.23.3
Commitments and Contingencies
3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
The table below summarizes the components of lease expense and income statement location for the three months ended March 31, 2023 and 2022:

Line Item in the
Company’s Condensed Consolidated
Income Statements
Three Months Ended
March 31, 2023
Three Months Ended
March 31, 2022
Finance lease costs:
Amortization of assets Depreciation and amortization $ 7,570  $ 21,797 
Interest on lease liabilities Other income (expense), net 889  1,437 
Total finance lease costs 8,459  23,234 
Operating lease costs General and administrative expenses 1,588,941  1,353,676 
Total lease costs $ 1,597,400  $ 1,376,910 
Supplemental information and balance sheet location related to leases is as follows:
March 31, 2023 December 31, 2022
Operating Leases:
Operating lease right-of -use asset $22,451,137 $20,587,199
Operating lease liability - current portion $5,622,576 $5,295,830
Operating lease liability - net of current portion 20,211,159 18,672,719
Total operating lease liability $25,833,735 $23,968,549
Finance Leases:
Property and equipment, at cost $151,396 $151,396
Less accumulated amortization (95,222) (87,652)
Property and equipment, net $56,174 $63,744
Finance lease liability - current portion 24,693 24,433
Finance lease liability - net of current portion 57,235 63,507
Total finance lease liabilities $81,928 $87,940
Weighted average remaining lease term (in years):
Operating leases 5.3 5.4
Finance lease 3.2 3.4
Weighted average discount rate:
Operating leases 5.0  % 4.8  %
Finance leases 4.3  % 4.3  %
Supplemental cash flow information related to leases is as follows:
Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases $ 1,695,098  $ 1,397,213 
Operating cash flows from finance leases 889  1,437 
Financing cash flows from finance leases 6,011  21,387 
Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease $ 2,247,839  $ 1,508,371 
Finance lease —  — 
Maturities of lease liabilities as of March 31, 2023 are as follows:
Operating Leases Finance Lease
2023 (remainder) $ 5,067,906  $ 20,700 
2024 6,389,909  27,600 
2025 5,800,960  27,600 
2026 3,994,546  11,500 
2027 2,998,993  — 
Thereafter 5,181,535  — 
Total lease payments $ 29,433,849  $ 87,400 
Less: Imputed interest (3,600,114) (5,472)
Total lease obligations 25,833,735  81,928 
Less: Current obligations (5,622,576) (24,693)
Long-term lease obligation $ 20,211,159  $ 57,235 
During the first quarter of 2023, 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 $0.6 million. These leases are expected to commence during the second and the third quarter of 2023, with lease terms of five to ten years.
Litigation
In the normal course of business, the Company is party to litigation and claims from time to time. The Company maintains insurance to cover certain litigation and claims.