9. LEASES

6 Months Ended

Mar. 31, 2024

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.

In January 2024, the Company ceased usage of its prior corporate headquarters, which was accounted for as an operating lease. As of March 2024, the Company has not sub-leased the location and has impaired the right of use asset in the amount of $396 and has recorded this as "impairment expense - other" on the Consolidated Statement of Operations and Comprehensive Income (Loss).

The Company's lease costs recognized during the six months ended March 31, 2024 and 2023 in the unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) consist of the following:


	For the three months ended				For the six months ended
($ in thousands)	March 31, 2024		March 31, 2023		March 31, 2024		March 31, 2023
Operating lease cost (1)	$	47	$	79	$	93	$	159
Finance lease cost:
Depreciation expense of financed assets	$	41	$	39	$	82	$	119
Interest on lease obligations	$	1	$	4	$	3	$	10

(1) Included in general and administrative expenses

Other lease information is as follows:


	For the six months ended
($ in thousands)	March 31, 2024		March 31, 2023
Cash paid for amounts included in measurement of lease obligations:
Operating cash outflows from operating leases	$	111	$	206
Operating cash outflows from finance leases	$	3	$	6
Financing cash outflows from finance leases	$	87	$	93


	March 31, 2024			September 30, 2023
Weighted-average remaining lease term - operating leases	3.3 years			3.8 years
Weighted-average remaining lease term - finance leases	0.5 years			0.9 years
Weighted-average discount rate - operating leases		5.40	%		5.40	%
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 March 31, 2024:


($ in thousands) Fiscal Year	Operating Leases			Finance Leases
2024	$	103		$	44
2025		201			9
2026		204			—
2027		106			—
2028		41			—
Gross lease liabilities		655			53
Less: imputed interest		(47	)		(1	)
Present value of lease liabilities	$	608		$	52
Less: Current portion of lease liabilities		(177	)		(52	)
Total lease liabilities, net of current portion	$	431		$	—