The Company has elected not to record operating right-of-use assets or operating lease liabilities on its consolidated balance sheet for leases having a minimum term of 12 months or less. Such leases are expensed on a straight-line basis over the lease term. Variable lease payments are excluded from the measurement of operating right-of-use assets and operating lease liabilities and are

recognized in the period in which the obligation for those payments is incurred. As of June 30, 2022, the Company has two operating right-of-use assets related to leased facilities in Austin, Texas and Melbourne, Florida.

Maturities of the operating lease liabilities as of June 30, 2022 were as follows: (in thousands):


For fiscal years ending September 30,
2022 (remainder)	$	72
2023		270
2024		278
2025		186
2026		130
Thereafter		225
Future minimum lease payments		1,161
Less interest		(88	)
Present value of minimum lease payments		1,073
Less current portion		(237	)
Long-term portion	$	836

Lease costs recognized in the consolidated statements of operations for the three and nine months ended June 30, 2022 and 2021 were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Right-of-use operating lease costs	$	68	$	67	$	204	$	178
Short-term lease costs		52		52		148		192
Total	$	120	$	119	$	352	$	370

Right-of use operating lease costs and short-term lease costs are included as a component of total operating expenses.


	Nine Months Ended
	June 30, 2022			June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	190		$	142
Operating lease assets obtained in exchange for new lease liabilities		—			1,336

Weighted average remaining lease term	4.9 years			5.8 years
Weighted average discount rate		3.25	%		3.25	%

The discount rate used on the operating right-of-use assets represented the Company’s incremental borrowing rate at lease inception.

The Company leases equipment to customers which generally range from daily rentals to minimum rental periods of up to one year. All of the Company’s current leasing arrangements, which the Company acting as lessor, are classified as operating leases. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition systems.

The Company regularly evaluates the collectability of its lease receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer, historical trends of the customer and current economic conditions. The Company suspends revenue recognition when the collectability of amounts due are no longer probable and concurrently records a direct write-off of the lease receivable to rental revenue and limits future rental revenue recognition to cash received. As of June 30, 2022, the Company’s trade accounts receivables included lease receivables of $5.4 million.

Rental revenue related to leased equipment for the three and nine months ended June 30, 2022 was $7.1 million and $15.2 million, respectively. Rental revenue related to leased equipment for the three and nine months ended June 30, 2021 was $5.4 million and $9.4 million, respectively.

Future minimum lease obligations due from the Company’s leasing customers on operating leases executed as of June 30, 2022 were $7.9 million, all of which is expected to be due within the next 12 months. An additional one-year operating lease was recently

executed and scheduled to begin in the fourth quarter of fiscal year 2022 with future minimum lease obligations of $11.9 million, the majority of which is expected to be due in fiscal year 2023.

Rental equipment consisted of the following (in thousands):


	June 30, 2022			September 30, 2021
Rental equipment, primarily wireless recording equipment	$	85,912		$	95,827
Accumulated depreciation and impairment		(55,002	)		(56,922	)
	$	30,910		$	38,905

During the first quarter of fiscal year 2022, the Company leased a portion of its property located in Calgary, Alberta, Canada and fully leased its warehouse in Bogotá, Colombia. The lease in Canada commenced in November 2021 and is for a five-year term. The lease on the warehouse in Bogotá commenced in December 2021 and is for a one-year term.

Rental revenue related to these two property leases for each of the three and nine months ended June 30, 2022 was $0.1 million, respectively.

Future minimum lease payments due to the Company as of June 30, 2022 on these two leases were as follows (in thousands):


For fiscal years ending September 30,
2022 (remainder)	$	49
2023		136
2024		128
2025		131
2026		132
Thereafter		11
	$	587