Clearfield leases a square foot facility at Winnetka Avenue North, Brooklyn Park, Minnesota consisting of our corporate offices, manufacturing and warehouse space. The lease term is years and months and commenced on On the Company amended its lease to add square feet to this facility, with the lease term for the additional space coterminous with the original lease. Upon proper notice and payment of a termination fee of approximately the Company has a -time option to terminate the lease effective as of the last day of the year of the term after the Company commenced paying base rent. The renewal and termination options have been included within the lease term because it is reasonably certain that we will exercise either option.

The Company's indirect lease for a square foot manufacturing facility in Tijuana, Mexico, expired on and was continued as an indirect lease on a month-to-month basis until we entered into a new indirect lease for this facility subsequent to the fiscal year end. Refer to Note - Subsequent Events for further detail.

 

On the Company entered into an indirect lease arrangement for an additional square foot manufacturing facility in Tijuana, Mexico. The lease term is approximately months and commenced on The lease contains written options to renew for additional consecutive periods of years each.

 

Right-of-use lease assets and lease liabilities are recognized as of the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do contain any material residual value guarantees or material restrictive covenants. As of we do have material lease commitments that have commenced.

 

Operating lease expense included within cost of sales and selling, general and administrative expense was as follows for the year ended

 

Operating lease expense under ASC842, Leases, within:			Year ended September 30, 2020
Cost of sales		$	904,638
Selling, general and administrative			221,507
Total lease expense		$	1,126,145

  

Future maturities of lease liabilities were as follows as of

 

			Operating Leases
FY2021		$	752,423
FY2022
FY2023			744,963
FY2024			516,725
FY2025			217,552
Thereafter			-
Total lease payments		$	3,004,465
Less: Interest			(209,538	)
Present value of lease liabilities		$	2,794,927

 

 

The weighted average term and weighted average discount rate for our leases as of were years and respectively. For the year ended the operating cash outflows from our leases were

 

Rent expense for our operating leases as accounted for under ASC , included within cost of sales and selling, general and administrative expense was as follows for the year ended

 

Operating lease expense under ASC840, Leases, within:			Year ended September 30, 2019
Cost of sales		$	678,652
Selling, general and administrative			219,216
Total lease expense		$	897,868

 

As previously disclosed in the Notes to the Financial Statements in our Annual Report on Form -K, prior to the adoption of ASU - , the future minimum payments required under lease agreements were as follows:

 

		As of September 30, 2019
FY2020		$	643,040
FY2021			479,213
FY2022			491,397
FY2023			503,895
FY2024			516,720
Thereafter			217,551
Total minimum lease payments		$	2,851,816