LEASES

3 Months Ended

Dec. 31, 2023

Leases

LEASES

NOTE 12    LEASES

The Company’s operating leases are primarily for corporate, engineering, and administrative office space. Total operating lease expense for the three months ended December 31, 2023, was $155,000, of which $4,000 was recorded in sales and marketing expenses and $151,000 was recorded in general and administrative expenses on the condensed consolidated statement of operations. Total operating lease expense for the three months ended December 31, 2022, was $148,000, of which $1,000 was recorded in sales and marketing expenses and $147,000 was recorded in general and administrative expenses on the condensed consolidated statement of operations.  Cash paid for amounts included in operating lease liabilities for the three months ended December 31, 2023 and 2022, which have been included in cash flows from operating activities, was $147,000 and $143,000, respectively.

At December 31, 2023, the Company’s operating leases had a weighted average remaining lease term of 7.4 years and a weighted average discount rate of 5.7%.

At December 31, 2023, future minimum payments under non-cancellable operating leases were as follows:

Remainder of Fiscal 2024	$	445,000
Fiscal 2025		556,000
Fiscal 2026		510,000
Fiscal 2027		419,000
Fiscal 2028		428,000
Thereafter		1,551,000
Total future minimum lease payments		3,909,000
Less imputed interest		(760,000	)
Present value of lease liabilities		3,149,000
Less current portion of lease liabilities		(426,000	)
Long-term portion of lease liabilities	$	2,723,000