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LEASES

12 Months Ended

Sep. 30, 2022

NOTE 11 – LEASES

The Company enters into operating leases for its facilities in New York, United Kingdom, and India, as well as for vehicles for use in our Industrial Services segment. The operating lease terms range from 2 to 7 years. The Company excluded the renewal option on its applicable facility leases from the calculation of its right-of-use assets and lease liabilities.

Finance and operating lease liabilities consist of the following:

	September 30,		September 30,
	2022		2021
Lease liabilities - current
Finance leases	$	-	$	-
Operating leases		818,730		830,791
		818,730		830,791

Lease liabilities - net of current portion
Finance leases	$	-	$	-
Operating leases		1,822,468		2,017,408
	$	1,822,468	$	2,017,408

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the Consolidated Balance Sheet at September 30, 2022, is set forth below:

Years ending September 30,	Operating Leases			Total
2023		853,544			853,544
2024		672,828			672,828
2025		650,494			650,494
2026		520,048			520,048
2027 & Thereafter		187,961			187,961
Undiscounted lease payments		2,884,875			2,884,875
Amount representing interest		(243,677	)		(243,677	)
Discounted lease payments	$	2,641,198		$	2,641,198

Additional disclosures of lease data are set forth below:

SCHEDULE OF LEASE COSTS

	For the years ended
	September 30,
	2022			2021
Lease costs:
Finance lease costs:
Depreciation of finance lease assets	$	-		$	17,184
Interest on lease liabilities		-			88

Operating lease costs:
Operating lease expense	$	686,124		$	980,062

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	978,443		$	962,790
Finance leases		-			20,061
	$	978,443		$	982,851

Weighted-average remaining lease term - finance leases (months)		0			0
Weighted-average remaining lease term - operating leases (months)		33			55

Weighted-average discount rate - finance leases		N/A			3.63	%
Weighted-average discount rate - operating leases		5.66	%		6.85	%

The Company used the rate implicit in the lease, where known, or its incremental borrowing rate as the rate used to discount the future lease payments.