Leases

6 Months Ended

Mar. 31, 2023

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 that 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 six months ended March 31, 2023 and 2022, respectively (in thousands):


	Three months ended March 31,				Six months ended March 31,
Lease Cost	2023		2022		2023		2022
Operating lease cost	$	378	$	573	$	755	$	1,143
Less: sublease income	(163)		(173)		(324)		(347)
Variable lease cost(1)	88		117		195		258
Short-term lease cost(2)	430		579		817		852
Total lease cost	$	733	$	1,096	$	1,443	$	1,906

(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 both March 31, 2023 and September 30, 2022, our operating lease assets have been reduced by a lease accrual of $0.1 million 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 March 31, 2023 and September 30, 2022, respectively (in thousands):


Operating Leases	March 31, 2023		September 30, 2022
Assets:
Operating lease assets, net	$	1,665	$	2,179
Liabilities:
Current operating lease liabilities	989		1,777
Long-term operating lease liabilities	731		545
Total lease liabilities	$	1,720	$	2,322

The following table provides the maturities of our operating lease liabilities as of March 31, 2023 (in thousands):


	Operating Leases
Remainder of 2023	$	756
2024	502
2025	233
2026	144
2027	131
Thereafter	18
Total future minimum lease payments	$	1,784
Less: present value discount (imputed interest)	(64)
Present value of lease liabilities	$	1,720

The weighted average discount rate as of March 31, 2023 was 3.5%. The weighted average remaining lease term was 2.35 years at March 31, 2023.