Leases (Tables)

9 Months Ended

Jun. 30, 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	June 30, 2023		September 30, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	13,643	$	15,299
Total lease assets		$	13,643	$	15,299
Liabilities
Operating leases	Current portion of operating lease liabilities	$	3,431	$	3,196
Operating leases	Operating lease liabilities	14,793		16,978
Total lease liabilities		$	18,224	$	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 June 30,				Nine months ended June 30,
	2023		2022		2023		2022
Operating lease cost	$	907	$	954	$	2,678	$	2,836
Variable lease cost	361		287		1,013		828
Short-term lease cost	26		27		69		83
Total lease cost	$	1,294	$	1,268	$	3,760	$	3,747

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 June 30, 2022. Digi acquired $0.1 million and $0.3 million in right-of-use assets in exchange for new operating lease liabilities in the three and nine months ended June 30, 2023, respectively.At June 30, 2023, the weighted average remaining lease term of our operating leases was 6.7 years and the weighted average discount rate for these leases was 4.4%.

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 June 30, 2023 (in thousands):

Fiscal year	Amount
2023 (three months)	$	1,131
2024	4,007
2025	3,537
2026	3,114
2027	2,042
2028	1,897
Thereafter	5,704
Total future undiscounted lease payments	21,432
Less imputed interest	(3,208)
Total reported lease liability	$	18,224