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 related to a leased facility in Austin, Texas. The lease commenced in May 2019 and is for a two-year term. The operating right-of-use asset had a balance of $0.1 million as of March 31, 2020. Future minimum lease payments related to the operating lease as of March 31, 2020 were as follows (in thousands):

For fiscal year ending September 30,
2020 (remainder)	$	83
2021		84
Future minimum lease payments		167
Less interest		(4	)
Present value of future minimum lease payments		163
Less current portion		(149	)
Non-current portion	$	14

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

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 $0.1 million, and short-term lease costs of $0.1 million and $0.2 million, both included as a component of total operating expenses, were recognized for the three and six months ended March 31, 2020, respectively.

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

	Six Months Ended
	March 31, 2020
Cash paid for amounts included in the measurement of lease liability	$	82
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 5 for more information on this lease.

Rental revenue for the three and six months ended March 31, 2020 was $16.4 million and $33.0 million, respectively. Rental revenue for the three and six months ended March 31, 2019 was and $14.3 million and $21.7 million, respectively.

At March 31, 2020, future minimum lease payments due from the Company’s leasing customers (all in fiscal year 2020) were $16.4 million (not inclusive of lease deposits of $0.4 million).

	March 31, 2020			September 30, 2019
Rental equipment, primarily wireless recording equipment	$	114,990		$	107,645
Accumulated depreciation and impairment		(52,301	)		(45,583	)
	$	62,689		$	62,062