The Company has elected not to record operating right-of-use assets or operating lease liabilities with a term of 12 months or less on its consolidated balance sheet. Such leases are expensed on a straight-line basis over the lease term. The Company has one operating right-of use asset on its consolidated balance sheet related to a leased facility in Austin, Texas. The lease commenced in May 2019 and is for a two-year term. Future minimum lease payments related to the operating lease is as follows (in thousands):

For fiscal year ending September 30,
2020 (remainder)	$	124
2021		84
Future minimum lease payments		208
Less interest		(6	)
Present value of future minimum lease payments		202
Less current portion		(160	)
Non-current portion	$	42

The discount rate used on the lease was 5%, which represents the Company’s incremental borrowing rate.

Operating lease costs are recorded in a single expense in the consolidated statements of operations and allocated to the right-of-use asset and the related lease liability as amortization expense and interest expense, respectively. Right-of-use asset operating lease costs of $38,000 and short-term lease costs of $76,000, both included as a component of total operating expenses, were recognized for the three months ended December 31, 2019.

Supplemental cash flow information related to the operating lease is a follows (in thousands):

	Three Months Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liability	$	40
Operating lease asset obtained in exchange for new lease liability		219

The Company leases equipment to customers primarily for terms of six months or less. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition system.

All of the Company’s leasing arrangements as lessor are classified as operating leases except for one sales-type lease. See note 4 for more information on this lease.

Rental revenue for the three months ended December 31, 2019 and 2018 was $16.6 million and $7.4 million, respectively.

At December 31, 2019, future minimum leases payments due from the Company’s leasing customers (all in fiscal year 2020) were $3.2 million (not inclusive of lease deposits of $0.7 million). At December 31, 2019, the minimum lease term for the majority of the equipment on lease to customers was expired and was leased on a day-to-day basis.

	December 31, 2019			September 30, 2019
Rental equipment, primarily wireless recording equipment	$	117,210		$	107,645
Accumulated depreciation and impairment		(50,225	)		(45,583	)
	$	66,985		$	62,062