Leases

3 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Note 9 – Leases

The Company leases certain equipment under non-cancelable operating leases. Future minimum rental payments under these leases at December 31, 2020 were immaterial.

On August 28, 2020, the Company entered into a three-year operating lease for property related to the manufacturing and warehousing of the Blaw-Knox paver product line which was acquired on October 1, 2020. The lease term is for the period beginning on 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. On October 9, 2020, the Company entered into an operating lease for additional warehousing space for Blaw-Knox inventory. The lease term is for one year beginning November 2020 with automatic one-year renewals. In accordance with ASU 2016-02, the Company recorded a ROU asset totaling $254,000 and related lease liabilities at inception.

For the quarter ended December 31, 2020, operating lease costs were $89,000 and cash payments related to these operating leases were $116,000.

Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines as of December 31, 2020 and September 30, 2020, is as follows:

	December 31, 2020			September 30, 2020
Operating lease ROU asset included in other long-term assets	$	1,106,000		$	942,000
Current operating lease liability		420,000			328,000
Non-current operating lease liability		686,000			614,000
Weighted average remaining lease term (in years)		2.75			2.92
Weighted average discount rate used in calculating ROU asset		4.0	%		4.0	%

Future annual minimum lease payments as of December 31, 2020 are as follows:

Fiscal Year	Annual Lease Payments
2021	$	348,000
2022		419,000
2023		400,000
Total		1,167,000
Less interest		(61,000	)
Present value of lease liabilities	$	1,106,000