LEASES

12 Months Ended

Sep. 30, 2025

Leases

LEASES

NOTE 13      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 consolidated financial statements. Total operating lease expense in Fiscal 2025 and Fiscal 2024 was $617,000 and $619,000, respectively. Cash paid for amounts included in operating lease liabilities in Fiscal 2025 and Fiscal 2024, which have been included in cash flows from operating activities, was $607,000 and $592,000, 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 September 30, 2025, the Company’s operating leases had a weighted average remaining lease term of 6.0 years and a weighted average discount rate of 5.9%.

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

Future minimum payments under non-cancellable operating leases are as follows: 

Fiscal 2026	$	587,000
Fiscal 2027		465,000
Fiscal 2028		428,000
Fiscal 2029		440,000
Fiscal 2030		452,000
Thereafter		659,000
Total future minimum lease payments		3,031,000
Less imputed interest		(486,000	)
Present value of lease liabilities		2,545,000
Less current portion of lease liabilities		(451,000	)
Long-term portion of lease liabilities	$	2,094,000