Leases (Tables)

6 Months Ended

Mar. 31, 2023

Leases [Abstract]

Supplemental Balance Sheet Information

The following table shows the supplemental balance sheet information related to our leases (in thousands):

	Balance Sheet Location	March 31, 2023		September 30, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	14,179	$	15,299
Total lease assets		$	14,179	$	15,299
Liabilities
Operating leases	Current portion of operating lease liabilities	$	3,346	$	3,196
Operating leases	Operating lease liabilities	15,519		16,978
Total lease liabilities		$	18,865	$	20,174

Components of Lease Cost

The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands):

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Operating lease cost	$	867	$	945	$	1,771	$	1,882
Variable lease cost	343		268		652		541
Short-term lease cost	18		28		43		56
Total lease cost	$	1,228	$	1,241	$	2,466	$	2,479

Supplemental Disclosures Leases

In November 2021, Digi acquired $0.9 million in right of-use assets and assumed $0.9 million in lease liabilities from the acquisition of Ventus that are included in the balances at March 31, 2022. Digi acquired $0.2 million in right-of-use assets in exchange for new operating lease liabilities in the three and six months ended March 31, 2023.At March 31, 2023, the weighted average remaining lease term of our operating leases was 6.9 years and the weighted average discount rate for these leases was 4.5%.

Operating Lease Liability Maturity

The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of March 31, 2023 (in thousands):

Fiscal year	Amount
2023 (six months)	$	2,033
2024	3,954
2025	3,501
2026	3,122
2027	2,043
2028	1,898
Thereafter	5,705
Total future undiscounted lease payments	22,256
Less imputed interest	(3,391)
Total reported lease liability	$	18,865