Leases

9 Months Ended

Jun. 30, 2025

Note 13 – Leases

On May 6, 2024, the Company entered into a lease to lease its operating and office facility under a non-cancelable real property lease agreement that expires on May 31, 2026. The real property lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company’s leases do not provide implicit discount rates, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

The components of lease expense were as follows:

Schedule of Lease Expense

	For the		For the
	Nine Months		Nine Months
	Ended June 30,		Ended June 30,
	2025		2024

Operating lease cost	$	30,354	$	-
Total net lease cost	$	30,354	$	-

Supplemental balance sheet information related to leases was as follows:

	June 30,			September 30,
	2025			2024
Operating leases:
Operating lease assets	$	35,640		$	57,006

Current portion of operating lease liabilities		36,545		$	36,428
Noncurrent operating lease liabilities		-			26,838
Total operating lease liabilities	$	36,545		$	63,266

Weighted average remaining lease term:
Operating leases		0.92			1.75 years

Weighted average discount rate:
Operating leases		7.9	%		7.9	%

Supplemental cash flow and other information related to leases was as follows:

	For the		For the
	Nine Months		Nine Months
	Ended June 30,		Ended June 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	26,721	$	-
Financing cash flows used for finance leases	$	-	$	-

Leased assets obtained in exchange for lease liabilities:		-
Total operating lease liabilities	$	-	$	-
Total finance lease liabilities	$	-	$	-

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities on a fiscal year basis, including common area maintenance fees, under non-cancelable operating leases as of June 30, 2025:

Fiscal Year Ending	Minimum Lease
June 30,	Commitments
2025 (3 months)	$	10,365
2026		27,639
2027		-
2028		-
2029		-
Total future undiscounted lease payments		38,004
Less interest		(1,459	)
Present value of lease payments		36,545
Less current portion		(36,545	)
Long-term operating lease liabilities	$	-

Hypha Labs, Inc. 10-Q