Leases

12 Months Ended

Sep. 30, 2020

NOTE 9 - LEASES

The Company leases certain equipment under non-cancelable operating leases. Future minimum rental payments under these leases at September 30, 2020 are immaterial. Total rental expense for the fiscal years ended September

30, 2020 and 2019 was $37,000 and $40,000, respectively.

On August 28, 2020, the Company entered into a

three-year

operating lease for property related to the manufactur

ing

and warehousing of the Blaw-Knox

paver business

which was acquired after September 30, 2020 (refer to Note 12 – Subsequent Events

for additional information

). The lease term is for the period September 1, 2020 through August 31, 2023. In accordance with ASU 2016-02, the Company recorded a ROU asset totaling

$970,000

and

related lease liabilities at inception.

For the year ended September 30, 2020, operating lease cost was

$28,000 which was accrued at September 30, 2020 and paid in October 2020. There were no cash payments related to this operating lease in fiscal 2020.

Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines is as follows:


	As of September 30, 2020
Operating lease ROU asset included in other long-term assets	$	942,000
Current operating lease liability		328,000
Non-current operating lease liability		614,000
Weighted average remaining lease term (in years)		2.92
Weighted average discount rate used in calculating ROU asset		4.0	%

Future annual minimum lease payments as of September 30, 2020 are as follows:


Fiscal Year	Annual Lease Payments
2021	$	335,000
2022		343,000
2023		322,000

Total		1,000,000
Less interest		(58,000	)

Present value of lease liabilities	$	942,000