16. LEASES

3 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

We have lease agreements for our corporate, warehouse and laboratory offices with lease periods expiring between 2021 and 2026. ASC 842 requires the recognition of leasing arrangements on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our leases are classified as operating leases. Our leases 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, we determine 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. Our 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, which are variable lease costs.

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 condensed consolidated statements of operations.

Components of operating lease costs are summarized as follows:

	Three Months Ended
	December 31, 2019
Operating lease costs	$	382,433
Variable lease costs		23,100
Total operating lease costs	$	405,533

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

	Three Months Ended
	December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	318,759

As of December 31, 2019, our operating leases had a weighted average remaining lease term of 6.36 years and a weighted average discount rate of 4.66%. Future minimum aggregate lease payments under operating leases as of December 31, 2019 are summarized as follows:

For the year ended September 30,
2020 (remaining nine months)	$	1,076,047
2021		1,452,434
2022		1,392,837
2023		1,380,204
2024		1,421,610
Thereafter		2,532,811
Total future lease payments		9,255,943
Less interest		(1,305,139	)
Total lease liabilities	$	7,950,804

Future minimum lease payments (including interest) under non-cancelable operating leases as of September 30, 2019 are summarized as follows:

For the year ended September 30,
2020	$	1,394,806
2021		1,452,434
2022		1,392,837
2023		1,380,204
2024		1,421,610
Thereafter		2,532,811
Total obligations and commitments	$	9,574,702