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LEASES
 3 Months Ended
Dec. 31, 2022
Leases  
LEASES

NOTE 14 – 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 3.6 years at December 31, 2022 and 4.3 years at December 31, 2021. Lease liabilities were $2,520,506 with $787,561classified as short-term at December 31, 2022, 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 5.6% at December 31, 2022 and 6.6% at December 31, 2021. 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.

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at December 31, 2022, is set forth below:

 

Years ending September 30,  Operating Leases 
2023   667,747 
2024   755,686 
2025   733,327 
2026   539,279 
2027 & Thereafter   205,358 
Undiscounted lease payments   2,901,397 
Amount representing interest   (380,891)
Discounted lease payments  $2,520,506 

 

Lease costs for the three months ended December 31, 2022 and 2021 are set forth below.:

 

   2022   2021 
   For the three months ended 
   December 31, 
   2022   2021 
Lease costs:          
Finance lease costs  $-   $17,272 
Operating lease costs   261,433    980,062 
Total lease cost  $261,433   $997,334