NOTE 12 – LEASES

Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased, or right-of-use assets in finance lease arrangements are reported in net property, plant and equipment on our condensed consolidated balance sheet. Our operating lease has expired under the contract terms in October 2019. The following table lists our right-of-use assets and liabilities on our condensed consolidated balance at:


	September 30,
Finance lease:	2019
Property, plant and equipment	$	54,376
Accumulated depreciation		29,907
Net property, plant and equipment	$	24,469
Current portion of long-term debt	$	11,391
Long-term debt	$	16,652
Total finance lease liabilities	$	28,043

Future payments for our finance lease follows by fiscal year: 2020: $6,600, 2021: $13,200 and 2022: $11,000. The amount representing finance lease interest is $2,757. Other supplemental information regarding our leases are contained in the following tables:


	September 30,
Components of lease expense for the period ended:	2019
Operating lease amortization	$	1,756
Operating lease interest	$	83
Finance lease amortization	$	5,437
Finance lease interest	$	1,232


	September 30,
Weighted average lease term and discount rate at:	2019
Lease term (years)	2.58
Lease rate	8	%


	September 30,
Supplemental cash flow information related to leases for the period ended:	2019
Cash used in operating activities	$	1,756
Cash used in financing activities	$	5,437