Leasing Arrangements

6 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leasing Arrangements

11. Leasing Arrangements

The Company is party to several operating leases, the majority of which are related to office, warehouse and manufacturing space. The related operating lease assets and obligations are reflected within right-of-use assets, net, current operating lease obligations, and long-term operating lease obligations on the Condensed Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred.

The lease costs for these operating leases reflected in our Condensed Consolidated Statements of Operations, as well as the right-of-use assets, net obtained during these periods in exchange for operating lease liabilities, are as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2022		2021		2022		2021
Lease costs within cost of sales	$	228	$	198	$	453	$	356
Lease costs within operating expenses		358		387		746		761
Right-of-use assets, net obtained in exchange for operating lease liabilities		2,803		612		3,021		692

In addition, the Company periodically enters into other short-term operating leases, generally with an initial term of twelve months or less. These leases are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is immaterial for the three and six months ended March 31, 2022 and 2021.

The Company often has options to renew lease terms, with the exercise of lease renewal options generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The discount rate implicit within our leases is generally not determinable and, therefore, the Company uses its incremental borrowing rate as the basis for its discount rate.

The weighted average remaining lease term for our operating leases and the weighted average discount rate used to measure our operating leases were as follows:

	March 31, 2022			September 30, 2021
Weighted average remaining lease term		4.3 years			3.6 years
Average discount rate		3.4	%		3.2	%

Maturities of lease liabilities by fiscal year for the Company’s operating leases were as follows as of March 31, 2022:

2022 (represents remainder of fiscal year)	$	1,173
2023		2,183
2024		1,775
2025		1,474
2026		890
Thereafter		792
Total lease payments		8,287
Less amount of lease payments representing interest		(574	)
Total present value of lease payments	$	7,713

Supplemental cash flow information related to the Company’s operating leases is as follows:

Six Months Ended March 31,	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,216	$	1,072