7. LEASES

9 Months Ended

Jun. 30, 2022

On October 1, 2019, the Company adopted the amendments to ASC 842, Leases, which requires lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, allowing entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements.

The Company has operating leases which are office spaces and finance leases which are primarily related to equipment used at its data center.

The Company's lease costs recognized during the three and nine months ended June 30, 2022 and 2021 in the unaudited Consolidated Statements of Operations and Comprehensive Loss consist of the following:


	For the three months ended				For the nine months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Operating lease cost (1)	$	83,236	$	58,446	$	249,711	$	247,452
Finance lease cost:
Amortization of right-of-use assets	$	94,815	$	94,815	$	284,445	$	207,544
Interest on lease obligations	$	8,837	$	13,868	$	30,349	$	32,091

(1) Included in general and administrative expenses

Other lease information is as follows:


	For the nine months ended
	June 30, 2022		June 30, 2021
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	236,670	$	287,336
Financing cash flows from finance leases	$	448,291	$	181,475


	June 30, 2022			September 30, 2021
Weighted-average remaining lease term - operating leases	4.3 years			5 years
Weighted-average remaining lease term - finance leases	1.53 years			3.2 years
Weighted-average discount rate - operating leases		4.50	%		4.50	%
Weighted-average discount rate - finance leases		5.50	%		5.50	%

The following is a schedule of the Company's lease liabilities by contractual maturity as of June 30, 2022:


Fiscal Year	Operating Leases			Finance Leases
2022 (three months remaining)	$	80,235		$	32,806
2023		324,949			321,887
2024		333,234			179,572
2025		341,767			21,728
2026		299,039			-
Thereafter		50,659			-
Gross lease liabilities		1,429,883			555,993
Less: imputed interest		(128,415	)		(32,065	)
Present value of lease liabilities	$	1,301,468		$	523,928
Less: Current portion of lease liabilities		(323,951	)		(274,222	)
Total lease liabilities, net of current portion	$	977,517		$	249,706