Leases

9 Months Ended

Jun. 30, 2024

Note 9 – Leases

The Company leases certain equipment under

non-cancelable

operating leases. Future minimum rental payments under these leases at June 30, 2024 were immaterial.

On August 28, 2020, the Company entered into a three-year operating lease for property related to manufacturing and warehousing. The initial lease term was for the period from September 1, 2020 through August 31, 2023. In accordance with ASU

2016-02,

the Company recorded a

right-of-use

(“ROU”) asset totaling $970,000 and related lease liabilities at inception. In March 2023, the Company extended the lease term through August 31, 2024. In accordance with ASU

2016-02,

the Company recorded a ROU asset totaling $352,000 and related lease liabilities upon extension. In March 2024, the Company extended the lease term through August 31, 2025. In accordance with ASU

2016-02,

the Company recorded a ROU asset totaling $361,000 and related lease liabilities upon extension.

For the quarter and nine months ended June 30, 2024, operating lease costs and cash payments related to operating leases were $109,000 and $328,000, respectively. For the quarter and nine months ended June 30, 2023, operating lease costs were $101,000 and $315,000, respectively, and cash payments related to these operating leases were $101,000 and $344,000, respectively.

Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines as of June 30, 2024 and September 30, 2023, is as follows:


	June 30, 2024			September 30, 2023
Operating lease ROU asset included in other long-term assets	$	420,000		$	328,000
Current operating lease liability		359,000			328,000
Non-current operating lease liability		61,000			—
Weighted average remaining lease term (in years)		1.17			0.51
Weighted average discount rate used in calculating ROU asset		5.0	%		4.5	%

Future annual minimum lease payments as of June 30, 2024 are as follows:


Fiscal Year	Annual Lease Payments
2024 (remaining 3 months)	$	91,000
2025		338,000

Total		429,000
Less interest		(9,000	)

Present value of lease liabilities	$	420,000