Leases

12 Months Ended

Sep. 30, 2021

We have leases for facilities and office equipment. Our lease liabilities are recognized as the present value of the future minimum lease payments over the lease term. Our right-of-use assets are recognized as the present value of the future minimum lease payments over the lease term less unamortized lease incentives and the balance remaining in deferred rent liability under ASC 840. Our lease payments consist of fixed and in-substance fixed amounts attributable to the use of the underlying asset over the lease term. Variable lease payments that do not depend on an index rate or are not in-substance fixed payments are excluded in the measurement of right-of-use assets and lease liabilities and are expensed in the period incurred. The incremental borrowing rate on our credit facility is used in determining the present value of future minimum lease payments. Some of our lease agreements include options to extend the lease term or terminate the lease. These options are accounted for in our right-of-use assets and lease liabilities when it is reasonably certain that the Company will extend the lease term or terminate the lease. The Company does not have any finance leases. As of September 30, 2021, operating leases for facilities and equipment have remaining lease terms of 1.2 to 9.5 years.

The following table summarizes lease balances on our consolidated balance sheet at September 30, 2021 and 2020 (in thousands):


	September 30,		September 30,
	2021		2020
Operating lease right-of-use assets	$	19,919	$	22,427

Operating lease liabilities, current	$	2,261	$	2,045
Operating lease liabilities, long-term	19,374		21,620
Total operating lease liabilities	$	21,635	$	23,665

The Company subleases a portion of one of its leased facilities. The sublease is classified as an operating lease with respect to the underlying asset. The sublease term is 5 years and ends June 2025. The sublease includes two additional 1 year term extension options.

For the years ended September 30, 2021 and 2020, total lease costs for our operating leases are as follows (in thousands):



	Year Ended
	September 30,
	2021		2020
Operating	$	3,653	$	4,236
Short-term	103		155
Variable	81		63
Sublease income	(302)		(271)
Total lease costs	$	3,535	$	4,183

At September 30, 2021, the weighted-average remaining lease term and weighted-average discount rate are 8.3 years and 6.0%, respectively. The calculation of the weighted-average discount rate was determined based on borrowing terms from our senior credit facility.

Other information related to our leases is as follows (in thousands):



	Year Ended
	September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities	$	3,306	$	3,586
New lease liabilities, net of new right-of-use-assets	$	—	$	229
Lease liabilities arising from obtaining right-of-use-assets	$	—	$	7,822

The Company's future minimum lease payments as of September 30, 2021 are as follows:


For the Fiscal Year Ending September 30,	(in thousands)
2022	$	3,501
2023	3,391
2024	3,251
2025	3,092
2026	3,193
Thereafter	11,491
Total future minimum lease payments	27,919
Less: imputed interest	(6,284)
Present value of future minimum lease payments	21,635
Less: current portion of operating lease liabilities	(2,261)
Long-term operating lease liabilities	$	19,374