OPERATING LEASES

9 Months Ended

Jun. 30, 2020

NOTE 9: OPERATING LEASES

The Company leases a lot located in Oceano for $3,421 per month. The lease has converted to a month-to-month lease; however, the lessor is considering a long-term renewal at this time. As of the period ending December 31, 2019, the County is working on the lot. As a result, this lease payment is not being made at this time and will be resumed once the County completes their work.

The Company has a five-year lease obligation for a copier. Rental expense under this operating lease is $384 per month. Future minimum lease payments under this obligation are as follows:

For the Twelve Months Ending June 30,
2020	$	4,608
2021		4,608
2022		3,072
	$	12,288

Rent expense under these lease agreements was $6,867 and $33,466 for the nine months ended June 30, 2020 and 2019, respectively, and $4,384 and $11,148 for the three months ended June 30, 2020 and 2019, respectively.