Leases

9 Months Ended

Jun. 30, 2021

Note 9 – Leases

The Company leases certain equipment under

non-cancelable

operating leases. Future minimum rental payments under these leases at June 30, 2021 were immaterial.

On August 28, 2020, the Company entered into a three-year operating lease for property related to the manufacturing and warehousing of the paver line which was acquired on October 1, 2020. The lease term is for the period beginning on September 1, 2020 through August 31, 2023. In accordance with ASU

2016-02,

the Company recorded a ROU asset totaling $970,000 and related lease liabilities at inception. On October 9, 2020, the Company entered into an operating lease for additional warehousing space for paver inventory. The lease term is for one year beginning November 2020 with automatic

one-year

renewals. In accordance with ASU

2016-02,

the Company recorded a ROU asset totaling $254,000 and related lease liabilities at inception.

For the quarter and nine months ended June 30, 2021, operating lease costs were $106,000 and $301,000, respectively, and cash payments related to these operating leases were $105,000 and $349,000, respectively.

Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines as of June 30, 2021 and September 30, 2020, is as follows:


	June 30, 2021			September 30, 2020
Operating lease ROU asset included in other long-term assets	$	894,000		$	942,000
Current operating lease liability		403,000			328,000
Non-current operating lease liability		491,000			614,000
Weighted average remaining lease term (in years)		2.25			2.92
Weighted average discount rate used in calculating ROU asset		4.0	%		4.0	%

Future annual minimum lease payments as of June 30, 2021 are as follows:


Fiscal Year	Annual Lease Payments
2021 (remaining 3 months)	$	116,000
2022		419,000
2023		400,000

Total		935,000
Less interest		(41,000	)

Present value of lease liabilities	$	894,000