NOTE 9 - COMMITMENTS

6 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments

NOTE 9 – COMMITMENTS

As of March 31, 2020, the Company has three finance leases of equipment and vehicle with a gross value of $86,686 and $64,285, respectively, included in property, plant and equipment. The Company also leases its offices under operating lease and short-term lease. The estimated effect of lease renewal and termination options, as applicable, was included in the consolidated financial statements in current period.

The components of lease expense were as follows:

		For the six months ended March 31,
		2020
Operating lease cost	$	251,153
Short term lease cost		1,757
Finance lease cost:
Amortization of right-of-use asset		14,915
Interest on lease liability		1,081
Total finance lease cost		15,996
Total lease cost	$	268,906

The following table presents the Company’s supplemental information related operating and finance leases:

		For the six months ended March 31,
		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance lease	$	1,081
Operating cash flows from operating lease	$	247,294
Financing cash flows from finance lease	$	20,362
Weighted Average Remaining Lease Term
Operating leases		1.57 years
Finance leases		3.35 years
Weighted Average Discount Rate
Operating leases		1.84%
Finance leases		1.87%

The future maturity of lease liabilities as of March 31, 2020 are as follows:

Year ending September 30		Finance lease		Operating lease
2020 (remaining)	$	14,102	$	184,906
2021		28,204		162,997
2022		40,445		68,625
2023		18,201		-
2024		10,618		-
Thereafter		-		-
Total	$	111,570	$	416,528
Less imputed interest		(3,881)		(6,089)
Total lease obligation		107,689		410,439
Less current portion		(26,388)		(302,836)
Non-current lease obligation	$	81,301	$	107,603