13. LEASES

3 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

NOTE 13            LEASES

Operating Leases

The Company leases office space for its corporate headquarters in West Palm Beach, Florida under a 90-month agreement expiring in September 2020. The operating lease granted six initial months of free rent and escalates at 3% per year. The monthly rent payment is approximately $7,700, which includes common area maintenance costs.

The Company leases office space for its Distribution segment sales and administrative office in Cham, Switzerland on a month-to-month basis. The monthly rent payment is $1,599 CHF, which is approximately $1,615.

IPS leases office space in Hauppauge, New York under a noncancelable lease agreement expiring in February 2027. The monthly rent payment is approximately $29,000, which includes power utilities.

IPS leases office space in Ronkonkoma, New York under a 3-year agreement expiring in January 2022. The monthly rent payment is $4,400.

As of December 31, 2019, the Company did not have additional operating and financing leases that have not yet commenced.

Total operating lease expenses for the three months ended December 31, 2019 was $132,046 and is recorded in general and administrative expenses on the condensed consolidated statement of operations.

Supplemental cash flows information related to leases was as follows:

	Three Months Ended December 31, 2019
Weighted Average Remaining Lease Term
Operating leases		11.66	Years
Finance leases		1.52	Years
Weighted Average Discount Rate
Operating leases		5.75%
Finance leases		5.75%

Future minimum payments under non-cancellable operating leases as of December 31, 2019 are as follows:

Fiscal Years Ended December 31,	Amount
2020	$	474,635
2021		416,199
2022		368,499
2023		378,190
2024		388,172
Thereafter		3,101,883
Total future minimum lease payments		5,127,578
Less: amount representing imputed interest		(1,467,324	)
Total	$	3,660,254

Finance Leases

The Company, specifically IPS, leases computer equipment through various finance lease agreements expiring through January 2022. Amortization expense related to assets under finance lease was $2,288 during the three months ended December 31, 2019 and interest expense related to the finance leases was $1,028 during the three months ended December 31, 2019.

Future minimum payments under non-cancellable operating leases as of December 31, 2019 are as follows:

Fiscal Years Ended December 31,	Amount
2020	$	43,551
2021		16,365
2022		2,111
Total future minimum lease payments		62,027
Less: amount representing imputed interest		(4,419	)
Total	$	57,608