LEASE ARRANGEMENTS

12 Months Ended

Sep. 30, 2018

6. LEASE ARRANGEMENTS

The total amount of equipment capitalized under capital lease obligations as of September 30, 2018 and 2017 was $6,252 and $6,195, respectively. Accumulated amortization on capital leases at September 30, 2018 and 2017 was $6,136 and $6,007, respectively. Amortization of assets acquired through capital leases is included in depreciation expense.

Future minimum lease payments on capital leases at September 30, 2018 for the next five years are as follows:

	Principal		Interest		Total

2019	$	87	$	4	$	91
2020		19		2		21
2021		16		1		17
2022		2		—		2
2023		—		—		—
	$	124	$	7	$	131

We lease office and laboratory space from the St. Louis University School of Medicine under operating leases that terminate at various dates through 2028. We also lease our facility in Maryland Heights, MO under an operating lease with an initial term lasting through 2025. Further, we lease other office equipment under non-cancelable operating leases that terminate at various dates through 2021. Certain of these leases contain renewal options. Total rental expense under these leases was $193 and $78 in fiscal 2018 and 2017, respectively. The UK building lease discussed in Note 12 expires in 2023 but includes an opt out provision after 7 years, which occurred in our fourth fiscal quarter of 2015 and was exercised.

Future minimum lease payments, exclusive of rent related to the UK restructuring discussed in Note 13, for the following fiscal years under operating leases at September 30, 2018 are as follows:

2019	$	549
2020		548
2021		547
2022		129
2023		129
	$	1,902

We lease a portion of our headquarters’ building in West Lafayette, Indiana to Cook Biotech, Inc. (Tenant) as part of the Lease Agreement signed in January 2015. The Lease Agreement has an initial term ending December 31, 2024 with escalating rents each year. The Tenant took full possession of the space on May 1, 2015. We recognize the escalating rents on a straight-line basis as a reduction to general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss) and lease rent receivable on the Consolidated Balance Sheets. The cash rent received is recorded to the customer account and as a reduction to the other accounts receivable on the Consolidated Balance Sheets. The variance between the straight line rents recognized and the actual cash rents received will net to zero in other accounts receivable by the end of the agreement on December 31, 2024. As of September 30, 2018, the rents recognized amounted to $2,172 and cash rent received amounted to $2,057. Future rental income recognized and cash rents received for the next five years are as follows:

	Straight line rents to be recognized		Cash rent to be received

2019	$	636	$	621
2020		636		633
2021		636		646
2022		636		659
2023		636		672
	$	3,180	$	3,231