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 December 31, 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 December 31, 2022 were as follows: (in thousands):


For fiscal years ending September 30,
2023 (remainder)	$	198
2024		278
2025		186
2026		130
2027		134
2028		91
Future minimum lease payments		1,017
Less interest		(71	)
Present value of minimum lease payments		946
Less current portion		(245	)
Long-term portion	$	701

Lease costs recognized in the consolidated statements of operations for the three months ended December 31, 2022 and 2021 were as follows (in thousands):


	Three Months Ended
	December 31, 2022		December 31, 2021
Right-of-use operating lease costs	$	68	$	68
Short-term lease costs		42		44
Total	$	110	$	112

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


	Three Months Ended
	December 31, 2022			December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	72		$	70

Weighted average remaining lease term	4.5 years			5.3 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 December 31, 2022, the Company’s trade accounts receivables included lease receivables of $9.0 million.

Rental revenue related to leased equipment for the three months ended December 31, 2022 and 2021 was $11.5 million and $4.9 million, respectively.

Future minimum lease obligations due from the Company’s leasing customers on operating leases executed as of December 30, 2022 were $27.1 million, all of which is expected to be due within the next 12 months.

Rental equipment consisted of the following (in thousands):


	December 31, 2022			September 30, 2022
Rental equipment, primarily wireless recording equipment	$	80,395		$	83,887
Accumulated depreciation and impairment		(57,153	)		(55,688	)
	$	23,242		$	28,199

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 currently on a month-to-month basis.

Rental revenue related to these two property leases for the three months ended December 31, 2022 was $46,000 and $29,000, respectively.

Future minimum lease payments due to the Company as of December 31, 2022 on these two leases were as follows (in thousands):


For fiscal years ending September 30,
2023 (remainder)	$	93
2024		128
2025		131
2026		132
2027		11
	$	495