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Leases
 12 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases
Note 6:    Leases
The following table details the Company's right of use assets and lease liabilities as of September 30, 2024 and 2023, respectively (in $000’s):
September 30,
2024		September 30,
2023
Right of use asset - operating leases$55,701 $54,544 
Lease liabilities:
Current - operating12,885 11,369 
Current - finance368 359 
Long term - operating50,111 48,156 
Long term - finance41,677 32,942 
The weighted average remaining lease term for operating leases is 9.92 years. The Company’s weighted average discount rate for operating leases is 9.92%. Total cash payments for operating leases for the year ended September 30, 2024 were approximately $18.6 million.
The weighted average remaining lease term for finance leases is 27.21 years. The Company’s weighted average discount rate for finance leases is 11.33%. Total cash payments for finance leases for the year ended September 30, 2024 were approximately $3.6 million.
As discussed in Note 4, on May 15, 2024, Precision Marshall acquired Central Steel Fabricators (“Central Steel”), a Chicago-based manufacturer of specialized fabricated metal products primarily for data centers and the communications industry. As of the date of execution, Central Steel sold the acquired real property in exchange for which Central Steel entered into a 20-year lease, with two options to renew for an additional five years each, which the Company is reasonably certain to exercise. This transaction is being treated as a failed sales and leaseback for accounting purposes, as described in ASC 842 “Leases”.
As discussed in Note 4, on July 20, 2023, the Company acquired PMW, a Kentucky-based Metal Stamping and Value-Added Manufacturing Company. As of the date of execution, PMW sold two real properties in exchange for which PMW entered into a 20-year lease, with two options to renew for an additional five years each, which the Company is reasonably certain to exercise. This transaction is being treated as a failed sales and leaseback for accounting purposes, as described in ASC 842 “Leases”.
As discussed in Note 4, on January 18, 2023, Live Ventures acquired 100% of the issued and outstanding equity interests of Flooring Liquidators, Inc., Elite Builder Services, Inc., 7 Day Stone, Inc., Floorable, LLC, K2L Leasing, LLC, and SJ & K Equipment, Inc. (collectively, the “Acquired Companies”). The Acquired Companies are leading retailers and installers of floors, carpets, and countertops to consumers, builders, and contractors in California and Nevada. In connection with the acquisition, the Company acquired several real and personal property leases, which are a combination of both operating and finance leases, as described in ASC 842 “Leases”.
Total present value of future lease payments of operating leases as of September 30, 2024 (in 000’s):
Twelve months ended September 30,
2025$17,656 
202615,288 
202712,832 
20289,322 
20295,440 
Thereafter27,748 
Total88,286 
Less implied interest(25,290)
Present value of payments$62,996 
The Company presents finance lease ROU assets as property and equipment. The balance, as of September 30, 2024 and 2023 is as follows (in $000’s):
September 30,
2024		September 30,
2023
Property and equipment, at cost$26,495 $22,526 
Accumulated depreciation(1,662)(702)
Property and equipment, net$24,833 $21,824 
Total present value of future lease payments of finance leases as of September 30, 2024 (in 000’s):
Twelve months ended September 30,
2025$3,952 
20264,036 
20274,118 
20284,237 
20294,372 
Thereafter126,198 
Total146,913 
Less implied interest(104,868)
Present value of payments$42,045 
Leases
Note 6:    Leases
The following table details the Company's right of use assets and lease liabilities as of September 30, 2024 and 2023, respectively (in $000’s):
September 30,
2024		September 30,
2023
Right of use asset - operating leases$55,701 $54,544 
Lease liabilities:
Current - operating12,885 11,369 
Current - finance368 359 
Long term - operating50,111 48,156 
Long term - finance41,677 32,942 
The weighted average remaining lease term for operating leases is 9.92 years. The Company’s weighted average discount rate for operating leases is 9.92%. Total cash payments for operating leases for the year ended September 30, 2024 were approximately $18.6 million.
The weighted average remaining lease term for finance leases is 27.21 years. The Company’s weighted average discount rate for finance leases is 11.33%. Total cash payments for finance leases for the year ended September 30, 2024 were approximately $3.6 million.
As discussed in Note 4, on May 15, 2024, Precision Marshall acquired Central Steel Fabricators (“Central Steel”), a Chicago-based manufacturer of specialized fabricated metal products primarily for data centers and the communications industry. As of the date of execution, Central Steel sold the acquired real property in exchange for which Central Steel entered into a 20-year lease, with two options to renew for an additional five years each, which the Company is reasonably certain to exercise. This transaction is being treated as a failed sales and leaseback for accounting purposes, as described in ASC 842 “Leases”.
As discussed in Note 4, on July 20, 2023, the Company acquired PMW, a Kentucky-based Metal Stamping and Value-Added Manufacturing Company. As of the date of execution, PMW sold two real properties in exchange for which PMW entered into a 20-year lease, with two options to renew for an additional five years each, which the Company is reasonably certain to exercise. This transaction is being treated as a failed sales and leaseback for accounting purposes, as described in ASC 842 “Leases”.
As discussed in Note 4, on January 18, 2023, Live Ventures acquired 100% of the issued and outstanding equity interests of Flooring Liquidators, Inc., Elite Builder Services, Inc., 7 Day Stone, Inc., Floorable, LLC, K2L Leasing, LLC, and SJ & K Equipment, Inc. (collectively, the “Acquired Companies”). The Acquired Companies are leading retailers and installers of floors, carpets, and countertops to consumers, builders, and contractors in California and Nevada. In connection with the acquisition, the Company acquired several real and personal property leases, which are a combination of both operating and finance leases, as described in ASC 842 “Leases”.
Total present value of future lease payments of operating leases as of September 30, 2024 (in 000’s):
Twelve months ended September 30,
2025$17,656 
202615,288 
202712,832 
20289,322 
20295,440 
Thereafter27,748 
Total88,286 
Less implied interest(25,290)
Present value of payments$62,996 
The Company presents finance lease ROU assets as property and equipment. The balance, as of September 30, 2024 and 2023 is as follows (in $000’s):
September 30,
2024		September 30,
2023
Property and equipment, at cost$26,495 $22,526 
Accumulated depreciation(1,662)(702)
Property and equipment, net$24,833 $21,824 
Total present value of future lease payments of finance leases as of September 30, 2024 (in 000’s):
Twelve months ended September 30,
2025$3,952 
20264,036 
20274,118 
20284,237 
20294,372 
Thereafter126,198 
Total146,913 
Less implied interest(104,868)
Present value of payments$42,045