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:
SCHEDULE OF LEASE LIABILITY
| |
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:
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY
| |
| | |
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:
SCHEDULE OF LEASE EXPENSE
| |
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:
SCHEDULE OF WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE
Weighted-average remaining lease term | |
| 1.59 years | |
Weighted-average discount rate | |
| 10 | % |
|