LEASES

3 Months Ended

Mar. 31, 2024

3 - LEASES

Under ASC 842, the Company applies a dual approach to all leases whereby the Company is a lessee and classifies leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the Company. Lease classification is evaluated at the inception of the lease agreement. Regardless of classification, the Company records a right-of-use asset and a lease liability for all leases with a term greater than 12 months. Operating lease expense is recognized on a straight-line basis over the term of the lease.

Operating right of use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating right of use assets represent our right to use an underlying asset and is based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases.

The components of the right-of-use assets and lease liabilities as of March 31, 2024 and December 31, 2023 were as follows:

At March 31, 2024 and December 31, 2023, supplemental balance sheet information related to leases were as follows:


	March 31, 2024		December 31, 2023
Operating lease right of use assets, net	$	229,016,100	$	241,613,588
Operating lease liabilities, current portion	$	1,944,026	$	1,982,281
Operating lease liabilities, net of current portion	$	231,815,657	$	242,488,610

At March 31, 2024, future minimum lease payments under the non-cancelable operating leases are as follows:

Schedule of future minimum lease payments under the non-cancelable operating leases


Twelve Months Ending March 31,
2025	$	30,835,724
2026		31,709,210
2027		32,589,176
2028		33,826,455
2029		34,890,889
Thereafter		409,189,267
Total lease payment	$	573,040,721
Less interest		(339,281,038	)
Present value obligation		233,759,683
Short-term liability		1,944,026
Long-term liability	$	231,815,657

The following summarizes other supplemental information about the Company’s operating lease:


	March 31, 2024			March 31, 2023
Weighted average discount rate		12.15	%		10.0	%
Weighted average remaining lease term (years)		13.4 years			13.0 years

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Operating lease cost	$	10,146,639	$	6,456,680
Short-term lease cost	$	291,035	$	616,856
Total lease cost	$	10,437,674	$	7,073,536