Leases

12 Months Ended

Sep. 30, 2021

NOTE 9 - LEASES

The Company leases certain equipment under

non-cancelable

operating leases. Future minimum rental payments under these leases at Sep

ember 30, 2021 are immaterial. Total rental expense for the fiscal years ended September 30, 2021 and 2020 was $78,000 and $37,000, respectively.

On August 28, 2020, the Company entered

into a three-year

operating lease for property related to the manufacturing and warehousing of the Blaw-Knox assets. 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 year ended September 30, 2021, operating lease costs were $440,000 and cash payments related to these operating leases were $468,000. For the year ended September 30, 2020, operating lease cost was $28,000 which was accrued at September 30, 2020 and paid in October 2020. There were no cash payments related to this operating lease in fiscal 2020

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


	September 30, 2021			September 30, 2020
Operating lease ROU asset included in other long-term assets	$	785,000		$	942,000
Current operating lease liability		393,000			328,000
Non-current operating lease liability		392,000			614,000
Weighted average remaining lease term (in years)		2.00			2.92
Weighted average discount rate used in calculating ROU asset		4.0	%		4.0	%

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


Fiscal Year	Annual Lease Payments
2022	$	417,000
2023		394,000
2024		6,000

Total		817,000
Less interest		(32,000	)

Present value of lease liabilities	$	785,000