LEASES

6 Months Ended

Mar. 31, 2026

NOTE 19 – 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 3.23 years at March 31, 2026, and 3.30 years at March 31, 2025. The weighted average discount rate used to measure lease liabilities was approximately 6.16% at March 31, 2026, and 6.22% at March 31, 2025. 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 a single lease that is classified as a finance lease for equipment acquired as part of the Richland acquisition. The remaining term of this lease is 0.58 years with a discount rate of 1.76% as of March 31, 2026.

The Company has elected not to recognize lease assets and liabilities for leases with a term of 12 months or less.

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 $2,075 per month. Short-term rent expense was $12,840 for the six months ended March 31, 2026, and $25,671 for the six months ended March 31, 2025.

A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the unaudited condensed consolidated balance sheet at March 31, 2026, is set forth below:

Years ending September 30,	Finance Leases			Operating Leases
Remainder of 2026	$	335,027		$	728,754
2027		-			1,170,804
2028		-			560,383
2029		-			372,750
2030 and thereafter		-			380,672
Undiscounted lease payments		335,027			3,213,363
Amount representing interest		(3,209	)		(322,629	)
Discounted lease payments		331,818			2,890,734
Less short-term lease liabilities		331,818			1,249,135
Long-term lease liabilities	$	-		$	1,641,599

Lease costs for the three and six months ended March 31, 2026, and 2025 are set forth below:

SCHEDULE OF LEASE COSTS

	2026		2025		2026		2025
	For the three months ended				For the six months ended
	March 31,				March 31,
	2026		2025		2026		2025
Operating lease costs:
Amortization of right-of-use assets		313,479		206,795		571,248		461,490
Interest on lease obligations		5,624		1,820		10,860		3,396
Operating lease costs total		319,103		208,615		582,108		464,886
Finance lease costs
Amortization of right-of-use assets		9,503		-		9,503		-
Interest on lease obligations		496		-		496		-
Finance lease costs total		9,999		-		9,999		-
Short-term lease costs		6,420		11,265		12,840		25,671
Total lease cost	$	335,522	$	219,880	$	604,947	$	490,557

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	319,103	$	208,615	$	582,108	$	464,886
Finance lease	$	6,897	$	-	$	6,897	$	-