Leases

3 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

Our leases consist primarily of office and manufacturing space and construction equipment. All of our future lease obligations are related to non-cancelable operating leases. The most significant portion of our lease portfolio relates to leases of office and manufacturing facilities in Canada which we no longer occupy. We currently sublease the majority of these Canadian facilities. The following table provides a summary of lease cost components for the three months ended December 31, 2021 and 2020, respectively (in thousands):

	Three months ended December 31,
Lease Cost	2021		2020
Operating lease cost	$	571	$	608
Less: sublease income	(174)		(180)
Variable lease cost(1)	141		108
Short-term lease cost(2)	273		169
Total lease cost	$	811	$	705

(1) Variable lease cost represents common area maintenance charges related to our Canadian office space lease.

(2) Short-term lease cost includes leases and rentals with initial terms of one year or less.

We recognize operating lease assets and operating lease liabilities representing the present value of the remaining lease payments for leases with initial terms greater than twelve months. Leases with initial terms of twelve months or less are not recorded in our Condensed Consolidated Balance Sheets. As of December 31, 2021 and September 30, 2021, our operating lease assets have been reduced by a lease accrual of $0.3 million and $0.4 million, respectively, related to certain unused facility leases in Canada. The following table provides a summary of the operating lease assets and operating lease liabilities included in our Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021, respectively (in thousands):

Operating Leases	December 31, 2021		September 30, 2021
Assets:
Operating lease assets, net	$	3,526	$	3,453
Liabilities:
Current operating lease liabilities	1,966		1,415
Long-term operating lease liabilities	1,866		2,413
Total lease liabilities	$	3,832	$	3,828

The following table provides the maturities of our operating lease liabilities as of December 31, 2021 (in thousands):

	Operating Leases
Remainder of 2022	$	1,822
2023	1,536
2024	361
2025	204
2026	51
Thereafter	—
Total future minimum lease payments	$	3,974
Less: present value discount (imputed interest)	(142)
Present value of lease liabilities	$	3,832

The weighted average discount rate as of December 31, 2021 was 3.87%. The weighted average remaining lease term was 2.0 years at December 31, 2021.