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LEASES

12 Months Ended

Sep. 30, 2022

6. LEASES

The Company has entered into operating leases for office and development facilities. These leases have terms which range from two to three years and include options to renew. These operating leases are listed as separate line items on the Company’s consolidated balance sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as separate line items on the Company’s consolidated balance sheets. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company recognized right-of-use assets and lease liabilities for operating leases of approximately $302,000 as of September 30, 2022. Operating lease right-of-use assets and liabilities commencing after October 1, 2018 are recognized at commencement date based on the present value of lease payments over the lease term. During years ended September 30, 2022 and 2021, the Company amended three leases expire and recognized the rent payments as an expense in the current period. As of September 30, 2022 and 2021, total operating lease liabilities for remaining long term lease was approximately $302,000 and $291,000, respectively. In the years ended September 30, 2022 and 2021, the Company recognized approximately $289,018 and $139,643, respectively, in total lease costs for the leases.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company’s operating right-of-use assets and related lease liabilities as of and for the year ended September 30, 2022 was as follows:

Cash paid for ROU operating lease liability $292,363

Weighted-average remaining lease term 17 months

Weighted-average discount rate 7%

The minimum future lease payments as of September 30, 2022 are as follows:

Years Ended September 30,	$
2023	$	194,537
2024		127,232
Total remaining payments		321,769
Less Imputed Interest		(19,254	)
Total lease liability	$	302,515