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LEASES
 6 Months Ended
Mar. 31, 2023
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 3.3 years at March 31, 2023 and 3.0 years at March 31, 2022. Lease liabilities were $2,297,293 with $732,680 classified as short-term at March 31, 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 March 31, 2023 and March 31, 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.

 

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at March 31, 2023, is set forth below:

 

Years ending September 30,  Operating Leases 
2023   431,540 
2024   755,686 
2025   733,327 
2026   539,279 
2027 & Thereafter   205,358 
Undiscounted lease payments   2,665,190 
Amount representing interest   (367,897)
Discounted lease payments  $2,297,293 

 

Lease costs for the three and six months ended March 31, 2023 and 2022 are set forth below.:

 

   2023   2022   2023   2022 
   For the three months ended   For the six months ended 
   March 31,   March 31, 
   2023   2022   2023   2022 
Lease costs:                    
Finance lease costs  $-   $-   $-   $- 
Operating lease costs   223,213    130,511    484,646    369,363 
Total lease cost  $223,213   $130,511   $484,646   $369,363