LEASES

12 Months Ended

Sep. 30, 2023

Right-of-use ("ROU") lease assets and lease liabilities that are reported in the Company’s consolidated balance sheets are as follows:


	September 30, 2023		September 30, 2022
Operating ROU assets, net	$	38,866	$	32,489

Current portion of operating lease liabilities	10,282		7,982
Long-term operating lease liabilities	29,614		24,854
Total operating lease liabilities	$	39,896	$	32,836

The increase in right-of-use lease assets and lease liabilities in the twelve months ended September 30, 2023 was primarily due to entering into leases for two facilities in Maryland. The increase in right-of-use lease assets and lease liabilities in the twelve months ended September 30, 2022 was primarily attributable to acquisitions as described in Note 3 - Business Combinations and further increased due to entering into the lease for our facility in Rockville, Maryland.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the twelve months ended September 30, 2023 and 2022 were:


	Fiscal Year Ended September 30,
	2023		2022
Operating lease costs:
Fixed operating lease costs	$	11,790	$	9,415
Short-term lease costs	175		108
Lease income	(3,039)		(2,067)

The Company serves as lessor to a lessee in six facilities. The gross rental income and underlying lease expense are presented net in the Company’s consolidated statements of operations. The gross rent receivables and underlying lease liabilities are presented gross in the Company’s consolidated balance sheets.

Supplemental cash flow information related to leases was as follows:


	Fiscal Year Ended September 30,
	2023		2022
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,252	$	8,540

Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	15,831	$	31,697

The weighted average remaining lease term and discount rate for the Company’s operating leases as of September 30, 2023 and 2022 were:


	Fiscal Years Ended September 30,
	2023		2022
Weighted-average remaining lease term (in years)
Operating lease	6.71		5.58
Weighted-average discount rate (in percentages)
Operating lease	9.36	%	6.90	%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of September 30, 2023, maturities of operating lease liabilities for each of the following five years and a total thereafter were as follows:


	Operating Leases
2024	$	10,797
2025	9,060
2026	7,995
2027	6,119
2028	4,752
Thereafter	18,531
Total minimum future lease payments	57,254
Less interest	(17,358)
Total lease liability	39,896