Leases

9 Months Ended

Jun. 30, 2022

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 and nine months ended June 30, 2022 and 2021, respectively (in thousands):

	Three months ended June 30,				Nine months ended June 30,
Lease Cost	2022		2021		2022		2021
Operating lease cost	$	551	$	598	$	1,695	$	1,835
Less: sublease income	(171)		(175)		(519)		(532)
Variable lease cost(1)	114		117		372		334
Short-term lease cost(2)	413		365		1,266		853
Total lease cost	$	907	$	905	$	2,814	$	2,490

(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 June 30, 2022 and September 30, 2021, our operating lease assets have been reduced by a lease accrual of $0.2 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 June 30, 2022 and September 30, 2021, respectively (in thousands):

Operating Leases	June 30, 2022		September 30, 2021
Assets:
Operating lease assets, net	$	1,909	$	3,453
Liabilities:
Current operating lease liabilities	953		1,415
Long-term operating lease liabilities	1,159		2,413
Total lease liabilities	$	2,112	$	3,828

The following table provides the maturities of our operating lease liabilities as of June 30, 2022 (in thousands):

	Operating Leases
Remainder of 2022	$	529
2023	1,336
2024	221
2025	58
2026	20
Thereafter	2
Total future minimum lease payments	$	2,166
Less: present value discount (imputed interest)	(54)
Present value of lease liabilities	$	2,112

The weighted average discount rate as of June 30, 2022 was 3.89%. The weighted average remaining lease term was 1.44 years at June 30, 2022.