LEASES

9 Months Ended

Jun. 30, 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 3.06 years at June 30, 2026, and 2.91 years at June 30, 2025. The weighted average discount rate used to measure lease liabilities was approximately 5.99% at June 30, 2026, and 6.56% at June 30, 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 0.33 years with a discount rate of 1.76% as of June 30, 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 $2,140 per month. Short-term rent expense was $19,260 for the nine months ended June 30, 2026, and $27,870 for the nine months ended June 30, 2025.

A reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the unaudited condensed consolidated balance sheet at June 30, 2026, is set forth below:

Years ending September 30,	Finance Leases			Operating Leases
Remainder of 2026	$	20,690		$	366,877
2027		293,647			1,232,076
2028		-			621,889
2029		-			434,257
2030 and thereafter		-			430,324
Undiscounted lease payments		314,337			3,085,423
Amount representing interest		(1,777	)		(286,643	)
Discounted lease payments		312,560			2,798,780
Less short-term lease liabilities		312,560			1,213,307
Long-term lease liabilities	$	-		$	1,585,473

Lease costs for the three and nine months ended June 30, 2026, and 2025 are set forth below:

SCHEDULE OF LEASE COSTS

	2026		2025		2026		2025
	For the three months ended June 30,				For the nine months ended June 30,
	2026		2025		2026		2025
Operating lease costs:
Amortization of right-of-use assets	$	315,694	$	222,870	$	886,942	$	684,360
Interest on lease obligations		8,794		5,048		19,654		8,444
Operating lease costs total		324,488		227,918		906,596		692,804
Finance lease costs
Amortization of right-of-use assets		28,508		-		38,011		-
Interest on lease obligations		1,432		-		1,928		-
Finance lease costs total		29,940		-		39,939		-
Short-term lease costs		6,420		7,337		19,260		33,008
Total lease cost	$	360,848	$	235,255	$	965,795	$	725,812

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	324,488	$	208,615	$	906,596	$	692,804
Financing lease	$	20,690	$	-	$	27,587	$	-