Note 5: Finance Leases - Lessee

The company has several finance leases, primarily for transportation equipment. These leases are generally 84 months in duration and have maturities through April 2031.

The following table summarizes the future minimum payments under finance lease liabilities as of June 30, 2024.

For the Fiscal Year Ending Sept 30,
2024 (remaining three months)	$	21,000
2025		41,000
2026		20,000
2027		20,000
2028		20,000
Thereafter		52,000
Total future minimum payments		174,000
Less amount representing interest		(39,000	)
Total finance lease obligations		135,000
Less current portion of finance lease obligations		(43,000	)

Total finance lease obligations, net of current portion	$	92,000

In addition, the company entered into a $100,000 lease for another transportation vehicle on July 1, 2024, which requires $20,000 annual payments through June 30, 2031.

The following table summarizes the components of the finance lease cost for the three and nine months ended June 30, 2024 and 2023, respectively.

		Three months Ended June 30,				Nine months ended June 30,
		2024		2023		2024		2023
Finance lease cost:
Amortization of ROU assets	$	13,000	$	14,000	$	38,000	$	43,000
Interest on lease liabilities		4,000		1,000		5,000		4,000
Total finance lease cost	$	17,000	$	15,000	$	43,000	$	47,000

Supplemental balance sheet information related to leases as of June 30, 2024 and September 30, 2023 are as follows.

		June 30,			September 30
		2024			2023
Property and equipment, gross	$	366,000		$	435,000
Accumulated amortization		(246,000	)		(385,000	)

Property and equipment, net	$	120,000		$	50,000

Weighted average remaining lease term
Finance leases		3.13 years			1.87 years

Weighted average discount rate
Finance leases		6.80%			6.67%