LEASES

9 Months Ended

Jun. 30, 2025

Leases

LEASES

NOTE 10 LEASES

The Company’s operating leases are primarily for corporate, engineering, and administrative office space and the related expense is recorded in general and administrative expenses on the condensed consolidated financial statements. Total operating lease expense for the three and nine months ended June 30, 2025 was $155,000 and $465,000, respectively and total operating lease expense for the three and nine months ended June 30, 2024 was $155,000 and $464,000, respectively. Cash paid for amounts included in operating lease liabilities for the nine months ended June 30, 2025 and 2024, which have been included in cash flows from operating activities, was $452,000 and $441,000, respectively.

The Company signed a renewal to extend the lease term of one of its New York locations through April 2027. Payments under this operating lease commenced February 1, 2025 and escalate 4.0% per year. The monthly rent payment is $6,000 per month.

At June 30, 2025, the Company’s operating leases had a weighted average remaining lease term of 6.1 years and a weighted average discount rate of 5.9%.

At June 30, 2025, future minimum payments under non-cancellable operating leases were as follows:

Remainder of Fiscal 2025	$	154,000
Fiscal 2026		587,000
Fiscal 2027		465,000
Fiscal 2028		428,000
Fiscal 2029		440,000
Thereafter		1,111,000
Total future minimum lease payments		3,185,000
Less imputed interest		(524,000	)
Present value of lease liabilities		2,661,000
Less current portion of lease liabilities		(475,000	)
Long-term portion of lease liabilities	$	2,186,000