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LEASES
 3 Months Ended
Dec. 31, 2023
Leases  
LEASES

NOTE 19 – 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 2.75 years at December 31, 2023, and 3 years at September 30, 2023. Lease liabilities were $2,155,559 with $728,875 classified as short-term at December 31, 2023, and $2,348,689 with $741,487, classified as short-term at September 30, 2023. The weighted average discount rate used to measure lease liabilities was approximately 5.6% at December 31, 2023, and September 30, 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. Cash used by operating leases were $193,130, and $132,963 for the three months ended December 31, 2023 and 2022.

 

The Company has elected 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. Short-term rent expense was $1,800 for the three months ended December 31, 2023.

 

The Company’s security segment leases approximately 1,037 square feet of office space in Clovis, CA on a month-to-month lease at a rent of $5,487 per month. Short-term rent expense was $16,461 for the three months ended December 31, 2023.

 

 

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

 

Years ending September 30,  Operating Leases 
2024   624,469 
2025   823,816 
2026   621,892 
2027   270,742 
2028 & Thereafter   51,415 
Undiscounted lease payments   2,392,334 
Amount representing interest   (236,775)
Discounted lease payments  $2,155,559 

 

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

 

   2023   2022 
   For the three months ended 
   December 31, 
   2023   2022 
Lease costs:          
Operating lease costs   193,432    261,433 
Short-term lease costs   18,261    - 
Total lease cost  $211,693   $261,433