LEASES

9 Months Ended

Jun. 30, 2024

Leases

LEASES

NOTE 10          LEASES

The Company’s operating leases are primarily for corporate, engineering, and administrative office space. Cash paid for amounts included in operating lease liabilities for the nine months ended June 30, 2024 and 2023, which have been included in cash flows from operating activities, was $441,000 and $429,000, respectively. Details of operating lease expense are as follows:

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2024		2023		2024		2023
Operating lease expense included in:
Sales and marketing expense	$	4,000	$	–	$	11,000	$	3,000
General and administrative expense		151,000		155,000		453,000		463,000
Total	$	155,000	$	155,000	$	464,000	$	466,000

At June 30, 2024, the Company’s operating leases had a weighted average remaining lease term of 7.1 years and a weighted average discount rate of 5.7%.

At June 30, 2024, future minimum payments under non-cancellable operating leases were as follows:

Remainder of Fiscal 2024	$	151,000
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		3,615,000
Less imputed interest		(672,000	)
Present value of lease liabilities		2,943,000
Less current portion of lease liabilities		(411,000	)
Long-term portion of lease liabilities	$	2,532,000