Note 13 - Leases

12 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 13 – LEASES

The Company has a lease agreement for its warehouse with the lease period expiring September 2026. ASC 842, Leases, requires the recognition of leasing arrangements on the consolidated balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased asset. The Company determines whether an arrangement is a lease at inception and classify it as finance or operating. All of the Company’s leases are classified as operating leases. The Company’s lease do not contain any residual value guarantees.

Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, the Company determined an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. The Company’s lease terms may include options to extend or terminate the lease.

In addition to the monthly base amounts in the lease agreements, the Company is required to pay real estate taxes, insurance and common area maintenance expenses during the lease terms.

Lease costs on operating leases are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of operations.

Components of operating lease costs are summarized as follows:

	Year Ended		Year Ended
	September 30,		September 30,
	2025		2024
Total Operating Lease Costs	$	663,570	$	1,328,4970

Supplemental cash flow information related to operating leases is summarized as follows:

	Year Ended		Year Ended
	September		September 30,
	2025		2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	589,264	$	1,421,610

As of September 30, 2025, our operating leases had a weighted average remaining lease term of 1 year and a weighted average discount rate of 4.66%. Future minimum aggregate lease payments under operating leases as of September 30, 2025 are summarized as follows:

For the year ended September 30,
2026		798,200
Total future lease payments		798,200
Less interest		19,960
Total lease liabilities	$	778,240