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Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||
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LEASES | 5. LEASES
The Company has entered into operating leases for office and development facilities which range from two to three years and include options to renew. The Company determines whether an arrangement is or contains a lease based upon the unique facts and circumstances at the inception of the lease. Operating lease liabilities and their corresponding right-of-use asses are recorded based upon the present value of the lease payments over the expected lease term. As of September 30, 2024 and 2023 total operating lease liabilities were $358,288 and $154,797, respectively. Right of use assets totaled approximately $337,703 and $145,090 at September 30, 2024 and 2023, respectively. In the year ended September 30, 2024 and 2023, the Company recognized $136,000 and $268,000, respectively in total lease costs for the leases. Because the rate implicit in each lease is not readily determinable, the Company uses its estimated incremental borrowing rate to determine the present value of the lease payments.
The weighted average remaining lease term for the operating leases was 34 months at September 30, 2024 and the weighted average discount rate was 7%.
The minimum future lease payments as of September 30, 2024 are as follows:
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