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LEASES | 12 Months Ended
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Sep. 30, 2021
LEASES |
LEASES | NOTE 15 – LEASES MTI has entered into various operating lease agreements for certain of its offices, manufacturing and warehouse facilities, and corporate jet. We have implemented the provisions of ASC 842, on October 1, 2019. Operating leases are included in right-of-use assets, and current and noncurrent portion of lease liabilities, as appropriate. These right-of-use assets also includes any lease payments made and initial direct costs incurred at lease commencement and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements which require payments for both lease and non-lease components and has elected to account for these as a single lease component. Certain leases provide for annual increases to lease payment based on an index or rate. We calculate the present value of future lease payments based on the index or at the lease commencement date for new leases. The table below presents information regarding our lease assets and liabilities. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2021 |  | September 30, 2020 |
Assets: |  | ​ |  |  | ​ |  | ​
Operating lease right-of-use assets | ​ | $ | 2,350,927 | ​ | $ | 1,729,112 | ​
Liabilities: | ​ |  |  | ​ |  |  | ​
Operating lease liabilities, current | ​ |  | (599,898) | ​ |  | (336,765) | ​
Operating lease liabilities, non-current | ​ |  | (1,857,894) | ​ |  | (1,482,569) | ​
Total lease liabilities | ​ | $ | (2,457,792) | ​ | $ | (1,819,334) | ​
Weighted average remaining lease terms: | ​ |  |  | ​ |  |  | ​
Operating leases | ​ |  | 3.34 years | ​ |  | 4.51 years | ​
Weighted average discount rate: | ​ |  |  | ​ |  |  | ​
Operating leases | ​ |  | 28 | % |  | 28 | %
Cash paid for amounts included in the measurement of lease liabilities for the fiscal year ended September 30, 2021, and 2020 | ​ | $ | 1,057,438 | ​ | $ | 1,096,054 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease costs: | ​ | For the fiscal year ended September 30,
​ |  | 2021 |  | 2020
Fixed lease cost | ​ | $ | 1,185,576 | ​ | $ | 430,886
Variable lease cost | ​ |  | 448,983 | ​ |  | 454,422
Short-term lease cost | ​ |  | 401,526 | ​ |  | 101,916
Sublease income | ​ |  | (84,473) | ​ |  | (81,993)
Total operating lease costs | ​ | $ | 1,951,612 | ​ | $ | 905,231
​ Operating Lease Commitments Our leases primarily consist of land, land and building, or equipment leases. Our lease obligations are based upon contractual minimum rates. Most leases provide that we pay taxes, maintenance, insurance and operating expenses applicable to the premises. The initial term for most real property leases is typically 1 to 3 years, with renewal options of 1 to 5 years, and may include rent escalation clauses. For financing obligations, a portion of the periodic lease payments is recognized as interest expense and the remainder reduces the obligations. For operating leases, rent is recognized on a straight-line basis over the lease term, including scheduled rent increases and rent holidays. On April 27, 2021, MTI entered into a 4-month lease agreement to lease a 127,400 square-foot manufacturing plant on 100 acres located at One Greentech Drive, Robinsonville (Tunica County), MS from May 1, 2021 through July 31, 2021 for $50,000 per month. MTI also has an option to purchase the property for $12.0 million. The lease agreement will terminate on the earlier of the (a) closing of the purchase of the property or (b) MTI’s termination of the lease. On March 12, 2021, MTI paid $240,000 into escrow for the asset purchase. Consummation of the purchase is contingent upon completion of satisfactory inspection, review of environmental report, etc. Furniture, fixtures, equipment and other assets are included as part of the purchase. On July 23, 2021, the parties entered into a first amendment to the agreement, whereby the lease is extended for an additional six months. On July 26, 2021, MTI paid $1,000,000 (“extension payment”) pursuant to the first amendment to the lease agreement (payments will remain at $50,000 per month through January 31, 2022). The source of the funds to make the extension payment came from proceeds received from the issuance of a convertible note with TDR Capital Pty Limited. The extension payment deposited into escrow will be credited to the purchase price upon closing. As of 11/12/2021, the property was purchased from Saleen Motors International, LLC for $12,000,000. The lease was cancelled on the purchase date of the aforesaid property. Refer to Note 19, Subsequent Events. The following table reflects maturities of operating lease liabilities at September 30, 2021: ​
​ | ​ | ​ | ​
Years ending |  | ​ |
September 30, | ​ | ​ | ​
2022 | ​ | $ | 1,213,728
2023 | ​ |  | 1,157,693
2024 | ​ |  | 824,287
2025 | ​ |  | 436,155
2026 | ​ |  | 222,787
Thereafter | ​ |  | —
Total lease payments | ​ | $ | 3,854,650
Less: Imputed interest | ​ |  | (1,396,858)
Present value of lease liabilities | ​ | $ | 2,457,792
​

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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