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, 2025.

For the Fiscal Year Ending September 30,		Finance Leases			Operating Lease
2026	$	181,000		$	32,000
2027		177,000		$	-
2028		177,000			-
2029		153,000			-
2030		83,000			-
Thereafter		88,000			-
Total future minimum payments		859,000			32,000
Less amount representing interest		(207,000	)		(1,000	)
Total lease obligations		652,000			31,000
Less current portion of lease obligations		(113,000	)		(31,000	)
Lease obligations, net of current portion	$	539,000		$	-

The following table summarizes the components of the lease cost for the years ended September 30, 2025 and 2024, respectively.

		Year ended September 30,
		2025		2024
Finance lease cost:
Amortization of right-of-use assets	$	137,000	$	68,000
Interest on lease liabilities		69,000		20,000
Total finance lease cost	$	206,000	$	88,000

Operating lease cost	$	46,000	$	11,000

Supplemental balance sheet information related to leases as of September 30, 2025 and 2024 are as follows.

		September 30,			September 30,
		2025			2024

Right-of-use assets, gross	$	784,000		$	836,000
Accumulated amortization		(184,000	)		(210,000	)
Net asset value included in property and equipment, net	$	600,000		$	626,000

Weighted-average remaining lease term
Finance leases	5.0 years	4.5 years
Operating lease	0.75 years	1.75 years


Weighted-average discount rate
Finance leases	11.4%	8.7%
Operating lease	12.0%	12.0%