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LEASES
 9 Months Ended
Jun. 30, 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 3.16 years at June 30, 2024, and 3 years at September 30, 2023. The weighted average discount rate used to measure lease liabilities was approximately 6.54% at June 30, 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 $5,400 for the nine months ended June 30, 2024, and $2,400 for the nine months ended June 30, 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 $43,941 for the nine months ended June 30, 2024.

 

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the condensed consolidated balance sheet at June 30, 2024, is set forth below:

 

Years ending September 30,  Operating Leases 
2024   218,345 
2025   877,020 
2026   686,436 
2027   315,517 
2028   58,085 
Undiscounted lease payments   2,155,403 
Amount representing interest   (158,796)
Discounted lease payments   1,996,607 
Less short-term operating lease liabilities   780,423 
Long-term operating lease liabilities  $1,216,184 

 

Lease costs for the three and nine months ended June 30, 2024, and 2023 are set forth below: 

 

                 
   For the three months ended   For the nine months ended 
   June 30,   June 30, 
   2024   2023   2024   2023 
Operating lease costs:                    
Operating lease costs   256,570    193,843    645,695    678,489 
Short-term lease costs   15,379    -    49,341    - 
Total lease cost  $271,949   $193,843   $695,036   $678,489