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LEASES
 6 Months Ended
Mar. 31, 2024
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 3.5 years at March 31, 2024, and 3 years at September 30, 2023. The weighted average discount rate used to measure lease liabilities was approximately 6.45% at March 31, 2024, and 5.66% at 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.

 

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 $3,600 for the six months ended March 31, 2024, and $600 for the six months ended March 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 $30,362 for the six months ended March 31, 2024.

 

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at March 31, 2024, is set forth below:

 

Years ending September 30,  Operating Leases 
2024   461,372 
2025   908,932 
2026   711,262 
2027   315,525 
2028   58,085 
Undiscounted lease payments   2,455,176 
Amount representing interest   (200,490)
Discounted lease payments  $2,254,686 

 

Lease costs for the three and six months ended March 31, 2024, and 2023 are set forth below:

 

   2024   2023   2024   2023 
   For the three months ended   For the six months ended 
   March 31,   March 31, 
   2024   2023   2024   2023 
Operating lease costs   195,693    223,213    389,125    484,646 
Short-term lease costs   15,701    -    33,962    - 
Total lease cost  $211,394   $223,213   $423,087   $484,646