Leases

3 Months Ended

Dec. 31, 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 plus lease payments made to the lessor before or at lease commencement 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 was 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 December 31, 2021, operating leases for facilities and equipment have remaining lease terms of 0.9 to 9.3 years.

The following table summarizes lease balances in our consolidated balance sheets at December 31, 2021 and September 30, 2021 (in thousands):


	December 31,		September 30,
	2021		2021
Operating lease right-of-use assets	$	18,562	$	19,919

Operating lease liabilities, current	$	2,192	$	2,261
Operating lease liabilities - long-term	18,127		19,374
Total operating lease liabilities	$	20,319	$	21,635

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 expires in June 2025. The sublease includes two additional 1-year term extension options.

For the three months ended December 31, 2021 and 2020, total lease costs for our operating leases are as follows (in thousands):



	Three Months Ended
	December 31,
	2021		2020
Operating	$	952	$	970
Short-term	27		29
Variable	18		5
Sublease income	(69)		(95)
Total lease costs	$	928	$	909

The Company's future minimum lease payments as of December 31, 2021 are as follows:


For the Fiscal Year Ending September 30,	(in thousands)
2022 (remaining)	$	2,505
2023	3,299
2024	3,156
2025	2,995
2026	3,092
Thereafter	11,000
Total future lease payments	26,047
Less: imputed interest	(5,728)
Present value of future minimum lease payments	20,319
Less: current portion of operating lease liabilities	(2,192)
Long-term operating lease liabilities	$	18,127

At December 31, 2021, the weighted-average remaining lease term and weighted-average discount rate are 8.1 years and 6%, 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):


	Three Months Ended
	December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities	$	905	$	881