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LEASES
 12 Months Ended
Sep. 30, 2023
Leases  
LEASES

NOTE 15 – LEASES

 

The Company is party to contracts where we lease property from others under contracts classified as operating leases. The Company primarily leases office and operating facilities, vehicles, and office equipment. The weighted average remaining term of our operating leases was approximately 3 years at September 30, 2023, and 3 years at September 30, 2022. Lease liabilities were $2,348,689 with $741,487 classified as short-term at September 30, 2023, and $2,576,963 with $754,495, classified as short-term at September 30, 2022. The weighted average discount rate used to measure lease liabilities was approximately 5.66% at September 30, 2023, and 2022. 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.

 

The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less.

 

The Company’s corporate segment leases approximately 100 square feet of office space in Brooklyn, NY on a month-to-month lease at a rent of $600 per month with $4,200 of expense for the year ended September 30, 2023 and approximately 911 square feet of office space in Clovis, CA on a month-to-month lease at a monthly rent of $4,930 with $5,550 of expense for the year ended September 30, 2023. The expense is under the caption “General and administrative” on the Company’s Consolidated Statement of Operations.

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the Consolidated Balance Sheet at September 30, 2023, is set forth below:

Years ending September 30,  Operating Leases 
2024   839,613 
2025   818,948 
2026   619,459 
2027   270,742 
2028 & Thereafter   51,415 
Undiscounted lease payments   2,600,177 
Amount representing interest   (251,488)
Discounted lease payments  $2,348,689 

 

Lease costs for the years ended September 30, 2023, and 2022 are set forth below:

         
   For the year ended 
   September 30, 
   2023   2022 
Operating lease costs   828,048    682,584 
Total lease cost  $828,048   $682,584