Note 5: Leases

The Company has both finance and operating leases. Finance leases are primarily for transportation equipment and are generally 60-84 months in duration with maturities through September 2031. The Company's one operating lease is for a storage lot and has a maturity date in 2026.

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

For the Fiscal Year Ending Sept 30,
		Finance Leases			Operating Lease
2025	$	181,000		$	48,000
2026		157,000			36,000
2027		154,000			-
2028		154,000			-
2029		131,000			-
Thereafter		108,000			-
Total future minimum payments		885,000			84,000
Less amount representing interest		(229,000	)		(9,000	)
Total lease obligations		656,000			75,000
Less current portion of lease obligations		(113,000	)		(41,000	)
Lease obligations, net of current portion	$	543,000		$	34,000

The following table summarizes the components of the lease cost for the years ended September 30, 2024 and 2023, respectively.

		September 30,
		2024		2023
Finance lease cost:
Amortization of ROU assets	$	68,000	$	54,000
Interest on lease liabilities		20,000		5,000
Total finance lease cost	$	88,000	$	59,000

Operating lease cost	$	11,000	$	-

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

		September 30,
		2024			2023
Right of use assets, gross	$	836,000		$	435,000
Accumulated amortization		(210,000	)		(385,000	)
	$	626,000		$	50,000

Weighted average remaining lease term
Finance leases		4.5 years			1.87 years

Weighted average discount rate
Finance leases		8.68%			6.67%