LEASES

12 Months Ended

Sep. 30, 2024

LEASES

LEASES

5. LEASES:

The Company’s Wholesale Segment leases certain warehouse facilities, office space, vehicles and office equipment. The Company’s Retail Segment leases store space in various shopping center complexes and certain office space. Certain of the warehouse and retail store leases include one or more options to renew or terminate the applicable lease agreement, with the exercise of such options at the Company’s discretion. The Company’s leases do not contain any significant residual value guarantees nor do they impose any significant restrictions or covenants other than those customarily found in similar types of leases.

The operating ROU lease assets and liabilities recorded on the Company’s consolidated balance sheets consist of fixed lease payments. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets and are expensed on a straight-line basis over the lease term. Additionally, certain leases contain variable payments such as vehicle leases with per-mile charges or retail leases with an additional rent payment based on store performance. These variable payments are expensed as incurred. The Company combines lease components and non-lease components for all asset classes for purposes of recognizing lease assets and liabilities. The Company determines its incremental borrowing rates based on information available at the lease commencement date in calculating the present value of lease payments. The Company reviews its ROU lease assets for indicators of impairment in the same manner as its other property and equipment as described in Note 1.

Leases consist of the following:

Assets	Classification	September 2024		September 2023
Operating	Operating lease right-of-use assets	$	25,514,731	$	23,173,287
Liabilities
Current:
Operating	Operating lease liabilities	$	7,036,751	$	6,063,048
Non-current:
Operating	Long-term operating lease liabilities		18,770,001		17,408,758
Total lease liabilities		$	25,806,752	$	23,471,806

The components of lease costs were as follows:

	Fiscal Year 2024		Fiscal Year 2023
Operating lease cost	$	8,012,939	$	7,673,309
Short-term lease cost		372,387		500,372
Variable lease cost		602,246		467,164
Net lease cost	$	8,987,572	$	8,640,845

Maturities of lease liabilities as of September 2024 were as follows:

	Operating Leases
2025	$	8,342,930
2026		6,847,341
2027		5,196,498
2028		3,455,810
2029		1,989,904
2030 and thereafter		4,055,263
Total lease payments		29,887,746
Less: interest		(4,080,994)
Present value of lease liabilities	$	25,806,752

Weighted-average remaining lease term and weighted-average discount rate information regarding the Company’s leases were as follows:

Lease Term	September 2024		September 2023
Weighted-average remaining lease term (years):
Operating	5.0		5.2
Discount Rate
Weighted-average discount rate:
Operating	5.91	%	4.97	%

Other information regarding the Company’s leases were as follows:

	Fiscal Year 2024		Fiscal Year 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	7,997,795	$	7,642,556
Lease liabilities arising from obtaining new ROU assets:
Operating leases	$	8,547,877	$	5,541,096