| Lessee, Operating Leases [Text Block] |
NOTE 17 – LEASES
We have entered into various operating lease agreements for certain offices, manufacturing and warehouse facilities, and land. Operating leases led to recognition of right-of-use assets, and of current and noncurrent portions of lease liabilities. These right-of-use assets also include any lease payments made, and initial direct costs incurred, at lease commencement and exclude 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 that require payments for both lease and non-lease components and have elected to account for these as a single lease component. Certain leases provide for annual increases to lease payments based on an index or rate.
The following table presents information regarding our lease assets and liabilities:
| |
|
June 30, 2025 |
|
|
September 30, 2024 |
|
| Assets: |
|
|
|
|
|
|
|
|
| Operating lease right-of-use assets, net of impairment |
|
$ |
2,481,312 |
|
|
$ |
3,041,485 |
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Operating lease liabilities, current |
|
|
(2,237,694 |
) |
|
|
(2,893,967 |
) |
| Operating lease liabilities, noncurrent |
|
|
(9,733,098 |
) |
|
|
(11,648,662 |
) |
| Total lease liabilities |
|
$ |
(11,970,792 |
) |
|
$ |
(14,542,629 |
) |
| Weighted average remaining lease terms: |
|
|
|
|
|
|
|
|
| Operating leases (in years) |
|
|
4.51 |
|
|
|
5.10 |
|
| Weighted average discount rate: |
|
|
|
|
|
|
|
|
| Operating leases |
|
|
28 |
% |
|
|
28 |
% |
| Cash paid for amounts included in the measurement of lease liabilities for the three months ended June 30, 2025 and 2024 |
|
|
1,754,199 |
|
|
|
784,770 |
|
| Cash paid for amounts included in the measurement of lease liabilities for the nine months ended June 30, 2025 and 2024 |
|
|
4,995,369 |
|
|
|
2,365,678 |
|
| Operating lease costs: |
|
For the Three Months Ended June 30, |
|
|
For the Nine Months Ended June 30, |
|
| |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| Fixed lease cost |
|
$ |
994,960 |
|
|
$ |
1,355,952 |
|
|
$ |
3,120,425 |
|
|
$ |
4,292,916 |
|
| Variable and short-term lease cost |
|
|
31,279 |
|
|
|
100,210 |
|
|
|
170,855 |
|
|
|
350,533 |
|
| Sublease income |
|
|
— |
|
|
|
(150,413 |
) |
|
|
— |
|
|
|
(462,363 |
) |
| Total operating lease costs |
|
$ |
1,026,239 |
|
|
$ |
1,305,749 |
|
|
$ |
3,291,280 |
|
|
$ |
4,181,086 |
|
The following table reflects the maturities of operating lease liabilities on June 30, 2025:
| Years ending September 30, |
|
|
|
|
| 2025 (3 months) |
|
$ |
1,432,935 |
|
| 2026 |
|
|
5,006,078 |
|
| 2027 |
|
|
4,958,062 |
|
| 2028 |
|
|
4,758,748 |
|
| 2029 |
|
|
1,286,244 |
|
| Thereafter |
|
|
4,487,146 |
|
| Total lease payments |
|
$ |
21,929,213 |
|
| Less: imputed interest |
|
|
(9,958,421 |
) |
| Carrying amount of lease liabilities |
|
$ |
11,970,792 |
|
|