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LEASES
 6 Months Ended
Mar. 31, 2025
Leases  
LEASES

NOTE 18 – 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 2.97 years at March 31, 2025, and 3.30 years at September 30, 2024. The weighted average discount rate used to measure lease liabilities was approximately 6.07% at March 31, 2025, and 6.54% at September 30, 2024. 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 three months ended March 31, 2025, and 2024.

 

The Company’s security segment leases approximately 350 square feet of office space in Clovis, CA on a month-to-month lease at a rent of $1,933 per month. Short-term rent expense was $22,071 for the six months ended March 31, 2025, and $30,362 for the six months ended March 31, 2024.

 

 

A reconciliation of undiscounted cash flows to operating lease liabilities recognized in the unaudited condensed consolidated balance sheet at March 31, 2025, is set forth below:

 

Years ending September 30,  Operating Leases 
2025   485,639 
2026   786,647 
2027   424,063 
2028   161,417 
2029   15,708 
Undiscounted lease payments   1,873,474 
Amount representing interest   (141,607)
Discounted lease payments   1,731,867 
Less short-term operating lease liabilities   829,644 
Long-term operating lease liabilities  $902,223 

 

Lease costs for the three and six months ended March 31, 2025, and 2024 are set forth below:

 

                 
   For the three months ended   For the six months ended 
   March 31,   March 31, 
   2025   2024   2025   2024 
Operating lease costs   208,615    196,302    464,886    389,734 
Short-term lease costs   11,265    15,701    25,671    33,962 
Total lease cost  $219,880   $212,003   $490,557   $423,696