Leases

3 Months Ended

Dec. 31, 2025

Note 9 – Leases

The Company leases certain equipment under

non-cancelable

operating leases. Future minimum rental payments under these leases at December 31, 2025 were immaterial.

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

2016-02,

Leases (Topic 842),

(“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. In March 2025, the Company extended the lease term through August 31, 2026. In accordance with ASU

2016-02,

the Company recorded a ROU asset totaling $370,000 and related lease liabilities upon extension.

For the quarter ended December 31, 2025, operating lease costs and cash payments related to these operating leases were $115,000. For the quarter ended December 31, 2024, operating lease costs related to these operating leases were $112,000 and cash payments related to these operating leases were $81,000.

Other information concerning the Company’s operating lease accounted for under Accounting Standards Codification (“ASC”) 842 guidelines as of December 31, 2025 and September 30, 2025, is as follows:


	December 31, 2025			September 30, 2025
Operating lease ROU asset included in other long-term assets	$	248,000		$	339,000
Current operating lease liability	$	248,000		$	339,000
Weighted average remaining lease term (in years)		0.67			0.92
Weighted average discount rate used in calculating ROU asset		4.5	%		4.5	%

Future annual minimum lease payments as of December 31, 2025 are as follows:


Fiscal Year	Annual Lease Payments
2026	$	252,000
Less interest		(4,000	)

Present value of lease liabilities	$	248,000