LEASES

12 Months Ended

Sep. 30, 2023

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 2023		September 2022
Operating	Operating lease right-of-use assets	$	23,173,287	$	19,941,009
Liabilities
Current:
Operating	Operating lease liabilities	$	6,063,048	$	6,454,473
Non-current:
Operating	Long-term operating lease liabilities		17,408,758		13,787,721
Total lease liabilities		$	23,471,806	$	20,242,194

The components of lease costs were as follows:

	Fiscal Year 2023		Fiscal Year 2022
Operating lease cost	$	7,673,309	$	6,690,239
Short-term lease cost		500,372		238,106
Variable lease cost		467,164		430,033
Net lease cost	$	8,640,845	$	7,358,378

Maturities of lease liabilities as of September 2023 were as follows:

	Operating Leases
2024	$	7,067,221
2025		5,905,993
2026		4,666,784
2027		3,189,966
2028		2,095,335
2029 and thereafter		3,828,522
Total lease payments		26,753,821
Less: interest		(3,282,015)
Present value of lease liabilities	$	23,471,806

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

Lease Term	September 2023		September 2022
Weighted-average remaining lease term (years):
Operating	5.2		4.0
Discount Rate
Weighted-average discount rate:
Operating	4.97	%	4.09	%

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

	Fiscal Year 2023		Fiscal Year 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	7,642,556	$	6,704,890
Lease liabilities arising from obtaining new ROU assets:
Operating leases	$	5,541,096	$	5,854,111