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Operating Leases
 6 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Operating Leases Operating Leases
The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expenses that do not depend on an index or rate.
We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease right to use (ROU) assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date.
Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. Sublease income and variable lease expenses are de minimis. The following table presents operating lease expense and cash payments on lease liabilities for the periods presented:
Three Months Ended March 31,Six Months Ended March 31,
in thousands2024202320242023
Operating lease expense$1,018 $956 $2,099 $1,957 
Cash payments on lease liabilities$1,021 $1,103 $1,994 $2,244 
At March 31, 2024 and 2023, the weighted-average remaining lease term and discount rate were as follows:
As of March 31,
20242023
Weighted-average remaining lease term6.8 years7.3 years
Weighted-average discount rate6.07%5.79%
The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of March 31, 2024:
Fiscal Years Ending September 30,
in thousands
2024(a)
$2,131 
20254,004 
20263,393 
20272,467 
20282,212 
Thereafter7,967 
    Total lease payments(b)
22,174 
    Less: imputed interest4,631 
    Total operating lease liabilities$17,543 
(a) Remaining lease payments are for the period beginning April 1, 2024 through September 30, 2024.
(b) Lease payments exclude $3.5 million of legally binding minimum lease payments for office leases signed but not yet commenced. The related ROU asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of March 31, 2024.