LEASES

12 Months Ended

Sep. 30, 2022

LEASES

LEASES

12.LEASES

Right-of-use lease assets and lease liabilities that are reported in the Company’s consolidated balance sheets are as follows:

	September 30, 2022		September 30, 2021
Operating ROU assets, net	$	32,489	$	8,358
Current portion of operating lease liabilities		7,982		1,959
Long-term operating lease liabilities		24,854		6,554
Total operating lease liabilities	$	32,836	$	8,513
Finance ROU assets, net	$	79	$	60
Current portion of finance lease liabilities		43		24
Long-term finance lease liabilities		41		39
Total finance lease liabilities	$	84	$	63

The increase in right-of-use lease assets and lease liabilities in the twelve months ended September 30, 2022 is primarily attributable to acquisitions as described in Note 3 and further increased due to entering the for our facility in Rockville, Maryland. Finance ROU assets are recorded in other assets and the current and long-term portions of finance lease liabilities are recorded in accrued expenses and other liabilities and other long-term liabilities, respectively.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s lease for the twelve months ended September 30, 2022 and 2021 were:

	Fiscal Year Ended
	September 30,
	2022		2021
Operating lease costs:
Fixed operating lease costs	$	9,415	$	1464
Short-term lease costs		108		76
Lease income		(2,067)		(657)
Finance lease costs:
Amortization of ROU asset expense		35		103
Interest on finance lease liability		4		184
Total lease cost	$	7,495	$	1,170

The Company serves as lessor to a lessee in five facilities. The gross rental income and underlying lease expense are presented net in the Company’s consolidated statement of operations. The gross rent receivables and underlying lease liabilities are presented gross in the Company’s consolidated balance sheets. The Company received total rental income of $2,067 and $657 for the twelve months ended September 30, 2022 and 2021, respectively.

Supplemental cash flow information related to leases was as follows:

	Fiscal Year Ended
	September 30,
	2022		2021
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,540	$	1,389
Operating cash flows from finance leases		33		184
Finance cash flows from finance leases		4		286
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	31,697	$	6,285
Right-of-use assets obtained in exchange for new finance lease liabilities		69		17

The weighted average remaining lease term and discount rate for the Company’s operating and finance leases as of September 30, 2022 and 2021 were:

	Fiscal Years Ended
	September 30,
	2022		2021
Weighted-average remaining lease term (in years)
Operating lease	5.58		4.66
Finance lease	2.30		3.25
Weighted-average discount rate (in percentages)
Operating lease	6.90	%	4.45	%
Finance lease	4.86	%	4.86	%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of September 30, 2022, maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows:

	Operating Leases		Finance Leases
2023	$	8,941	$	43
2024		7,643		31
2025		6,629		12
2026		5,407		2
2027		3,491		—
Thereafter		8,269		—
Total minimum future lease payments		40,380		88
Less interest		(7,544)		(4)
Total lease liability		32,836		84