9. LEASES

12 Months Ended

Sep. 30, 2023

9. LEASES

On October 1, 2019, the Company adopted the amendments to ASC 842, leases which require lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, allowing entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements.

The Company’s operating leases are office spaces and finance leases which are primarily related to equipment used at its data center.

The Company's lease costs recognized in the Consolidated Statements of Operations and Comprehensive Loss consist of the following:


	For the year ended
($ in thousands)	September 30, 2023		September 30, 2022
Operating lease cost (1)	$	267	$	113
Finance lease cost:
Depreciation expense of financed assets	$	197	$	379
Interest on lease obligations	$	33	$	38

(1)

Included in general and administrative expenses.

Other lease information is as follows:


	For the year ended
($ in thousands)	September 30, 2023		September 30, 2022
Cash paid for amounts included in measurement of lease obligations:
Operating cash outflows from operating leases	$	274	$	131
Operating cash outflows from finance leases	$	33	$	38
Financing cash outflows from finance leases	$	301	$	519


	September 30, 2023			September 30, 2022
Weighted-average remaining lease term - operating leases	3.8 years			1.5 years
Weighted-average remaining lease term - finance leases	0.9 years			1.5 years
Weighted-average discount rate - operating leases		5.40	%		4.50	%
Weighted-average discount rate - finance leases		5.50	%		5.50	%

The following is a schedule of the Company's lease liabilities by contractual maturity as of September 30, 2023:


($ in thousands) Fiscal Year	Operating Leases			Finance Leases
2024	$	214		$	134
2025		201			9
2026		203			—
2027		106			—
2028		41			—
Gross lease liabilities		765			143
Less: imputed interest		(65	)		(3	)
Present value of lease liabilities	$	700		$	140
Less: Current portion of lease liabilities		(181	)		(130	)
Total lease liabilities, net of current portion	$	519		$	10