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LEASES
 9 Months Ended
Jun. 30, 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 years at June 30, 2023, and 3 years at June 30, 2022. Lease liabilities were $2,213,341 with $716,896 classified as short-term at June 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 5.64% at June 30, 2023, and 5.66% at June 30, 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.

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at June 30, 2023, is set forth below:

 

Years ending September 30,  Operating Leases 
2023   211,721 
2024   786,889 
2025   764,530 
2026   684,449 
2027 & Thereafter   289,528 
Undiscounted lease payments   2,737,117 
Amount representing interest   (523,776)
Discounted lease payments  $2,213,341 

 

Lease costs for the three and nine months ended June 30, 2023, and 2022 are set forth below.:

 

   2023   2022   2023   2022 
   For the three months ended   For the nine months ended 
   June 30,   June 30, 
   2023   2022   2023   2022 
Operating lease costs   193,843    223,595    678,489    592,958 
Total lease cost  $193,843   $223,595   $678,489   $592,958