v3.25.2
OPERATING LEASES
9 Months Ended
Jun. 30, 2025
Operating Leases  
OPERATING LEASES

NOTE 6. OPERATING LEASES

 

Operating leases

 

We have operating leases for office space and office equipment. Some of our leases include one or more options to renew, options to extend for a long-term period, and options to terminate within 30 days. In certain of our lease agreements, the rental payments were adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes.

 

Our lease liability consisted of the following as of June 30, 2025, and September 30, 2024:

 

  

June 30,

2025

  

September 30,

2024

 
Short term portion  $74,777   $69,395 
Long term portion   47,185    103,959 
Total lease liability  $121,962   $173,354 

 

 

Maturity analysis under these lease agreements are as follows for fiscal years:

 

      
Remaining in fiscal year 2025  $20,902 
2026   83,607 
2027   29,649 
2028    
Total undiscounted cash flows   134,158 
Less: 10% present value discount   (12,196)
Lease liability  $121,962 

 

We recorded lease expense, cash payments against lease liabilities and accretion on lease liability in sales, general and administration expenses in our unaudited condensed consolidated statement of operations:

 

   2025   2024   2025   2024 
  

Three Months Ended

June 30,

  

Nine Months Ended

June 30,

 
   2025   2024   2025   2024 
Operating lease expense  $20,902   $20,902   $62,706   $34,836 
Short-term lease expense       2,400    2,400    41,643 
Total lease expense  $20,902   $23,302   $65,106   $76,479 

 

   2025   2024   2025   2024 
  

Three Months Ended

June 30,

  

Nine Months Ended

June 30,

 
   2025   2024   2025   2024 
Cash payments against lease liabilities  $20,902   $20,902   $62,706   $34,836 

 

   2025   2024   2025   2024 
  

Three Months Ended

June 30,

  

Nine Months Ended

June 30,

 
   2025   2024   2025   2024 
Accretion on lease liability  $3,342   $5,007   $11,311   $8,563 

 

Weighted-average remaining lease term and discount rate for operating leases are as follows:

 

Weighted-average remaining lease term   1.59 years 
Weighted-average discount rate   10%