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 March 31, 2025:

For the Fiscal Year Ending Sept. 30,		Finance Leases			Operating Lease
2025 (6 months)	$	86,000		$	24,000
2026		162,000			32,000
2027		154,000			-
2028		154,000			-
2029		131,000			-
Thereafter		107,000			-
Total future minimum payments		794,000			56,000
Less amount representing interest		(195,000	)		(4,000	)
Total lease obligations		599,000			52,000
Less current portion of lease obligations		(105,000	)		(44,000	)
Lease obligations, net of current portion	$	494,000		$	8,000

The following table summarizes the components of the lease cost for the three and six months ended March 31, 2025 and 2024 (unaudited):

		Three months ended March 31,				Six months ended March 31,
		2025		2024		2025		2024
Finance lease cost:
Amortization of right-of-use assets	$	33,000	$	13,000	$	67,000	$	27,000
Interest on lease liabilities		18,000		1,000		35,000		2,000
Total finance lease cost	$	51,000	$	14,000	$	102,000	$	29,000

Operating lease cost	$	11,000	$	11,000	$	25,000	$	22,000

Supplemental balance sheet information related to leases as of March 31, 2025 and September 30, 2024 is as follows:

		March 31,			September 30,
		2025			2024
		(unaudited)
Right-of-use assets, gross	$	836,000		$	836,000
Accumulated amortization		(276,000	)		(210,000	)
Net asset value included in property and equipment, net	$	560,000		$	626,000

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate as of March 31, 2025 and September 30, 2024:

	March 31,	September 30,
	2025	2024
	(unaudited)
Weighted-average remaining lease term
Finance leases	5.5 years	4.5 years
Operating lease	1.25 years	1.75 years

Weighted-average discount rate
Finance leases	11.1%	8.7%
Operating lease	12.0%	12.0%