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LEASES

12 Months Ended

Sep. 30, 2024

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 3.3 years at September 30, 2024, and 3 years at September 30, 2023. The weighted average discount rate used to measure lease liabilities was approximately 6.54% at September 30, 2024, and 2023. 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’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 $7,200 of expense for the year ended September 30, 2024 and approximately 911 square feet of office space in Clovis, CA on a month-to-month lease at a monthly rent of $4,202 with $58,996 of expense for the year ended September 30, 2024. The expense is under the caption “General and administrative” on the Company’s Consolidated Statements of Operations.

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the Consolidated Balance Sheet at September 30, 2024, is set forth below.

Years ending September 30,	Operating Leases
2025		924,699
2026		734,114
2027		363,196
2028		99,730
2029		10,519
Undiscounted lease payments		2,132,258
Amount representing interest		(140,231	)
Discounted lease payments		1,992,027
Less short-term operating lease liabilities		832,823
Long-term operating lease liabilities	$	1,159,204

Lease costs for the years ended September 30, 2024, and 2023 are set forth below.

SCHEDULE OF LEASE COSTS

	2024		2023
	For the year ended
	September 30,
	2024		2023
Operating lease costs		831,536		828,048
Short-term lease costs		66,196		-
Total lease cost	$	897,732	$	828,048