| LEASES |
NOTE 11 — LEASES The Company primarily has operating leases for administrative offices, and finance lease agreements for equipment from third-parties. A summary of supplemental balance sheet information related to operating leases as of March 31, 2026 and September 30, 2025 was as follows: | | | | | | | | | | 2026 | | 2025 | | | | | | | audited | | Operating lease right-of-use assets | | $ | 622,944 | | $ | 674,885 | | | | | | | | | | Operating lease liabilities, current | | | 150,644 | | | 144,408 | | Operating lease liabilities, non-current | | | 497,577 | | | 556,584 | | | | | | | | | | Total operating lease liabilities | | $ | 648,221 | | $ | 700,992 | | | | | | | | | | Weighted average remaining lease term | | | 53.3 months | | | 59.3 months | | | | | | | | | | Weighted average discount rate | | | 4.3 | % | | 4.3 | % |
NOTE 11 — LEASE (Continued) A summary of supplemental balance sheet information related to finance leases as of March 31, 2026 and September 30, 2025 was as follows: | | | | | | | | | 2026 | | 2025 | | | | | | audited | Finance lease right of use assets - cost | | $ | 1,280,000 | | $ | 1,280,000 | Accumulated amortization | | | (384,000) | | | (256,000) | Finance lease right of use assets, net | | | 896,000 | | | 1,024,000 | | | | | | | | Weighted average remaining lease term | | | 42 months | | | 48 months | Weighted average discount rate * | | | N/A | | | N/A |
*As the finance lease for the AI computing facility was paid off at the commerce date of the lease term, no discount is necessary to be adopted. A summary of lease expenses recognized in the consolidated statements of operations for the six months ended March 31, 2026 and 2025 supplemental cash flow information related to operating leases were as follows: | | | | | | | | | 2026 | | 2025 | Operating lease expenses – third party | | $ | 82,465 | | $ | 112,135 | Short-term lease | | $ | 1,539 | | $ | 30,429 | | | | | | | | Cash paid for operating leases and finance lease | | $ | 84,145 | | $ | 1,295,768 | ROU assets recognized during the period | | $ | — | | $ | 688,556 |
Minimum future lease payments under non-cancellable operating leases described above as of March 31, 2026 were as follows: | | | | Twelve months ending March 31, 2027 | | $ | 170,350 | Twelve months ending March 31, 2028 | | | 167,752 | Twelve months ending March 31, 2029 | | | 146,129 | Twelve months ending March 31, 2030 | | | 146,129 | Twelve months ending March 31, 2031 | | | 153,436 | Total | | | 783,796 | | | | | Less: present value discount | | | (135,575) | | | | | Total operating lease liabilities | | $ | 648,221 |
No future payments under the finance lease arrangement as of March 31, 2026.
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