Leases

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

Our leases consist primarily of office and manufacturing space, construction equipment and office 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 years ended September 30, 2022 and 2021, respectively (in thousands):

Lease Cost	2022		2021
Operating lease cost	$	2,146	$	2,435
Less: sublease income	(685)		(706)
Variable lease cost(1)	457		443
Short-term lease cost(2)	1,643		1,281
Total lease cost	$	3,561	$	3,453
(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 Consolidated Balance Sheets. As of September 30, 2022 and 2021, our operating lease assets have been reduced

by a lease accrual of $0.1 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 Consolidated Balance Sheets as of September 30, 2022 and 2021, respectively (in thousands):

	September 30,
Operating Leases	2022		2021
Assets:
Operating lease assets, net	$	2,179	$	3,453
Liabilities:
Current operating lease liabilities	1,777		1,415
Long-term operating lease liabilities	545		2,413
Total lease liabilities	$	2,322	$	3,828

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

	Operating Leases
2023	$	1,861
2024	375
2025	114
2026	20
2027	2
Thereafter	—
Total future minimum lease payments	$	2,372
Less: present value discount (imputed interest)	(50)
Present value of lease liabilities	$	2,322

The weighted average discount rate as of September 30, 2022 was 3.73%. The weighted average remaining lease term was 1.51 years at September 30, 2022.