Commitments and Contingencies

12 Months Ended

Sep. 30, 2020

Commitments and Contingencies

Commitments and Contingencies

14.  Commitments and Contingencies

Operating Leases

Rent expense under operating leases totaled approximately $141,000,  $140,000 and $113,000 for the years ended September 30, 2020, 2019 and 2018, respectively. Future minimum lease payments under non-cancelable operating leases are $48,000 for the year ended September 30, 2020.

Purchase Obligations

A “purchase obligation” is defined as an agreement to purchase goods or services that is enforceable and legally binding on the Company and that specifies all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions, and the approximate timing of the transaction. These amounts primarily comprise of open purchase order commitments entered in the ordinary course of business with vendors and subcontractors pertaining to fulfillment of the Company’s current order backlog.  The purchase obligations on open purchase orders were $853,123,  $1,082,928 and $730,275 as of September 30, 2020, 2019 and 2018, respectively.

Product Liability

The Company has product liability insurance of $50,000,000.  The Company has not experienced any material product liability claims.

Legal Proceedings

In the ordinary course of business, the Company is at times subject to various legal proceedings and claims. The Company does not believe any such matters that are currently pending will, individually or in the aggregate, have a material effect on the results of operations or financial position.