Leases

3 Months Ended

Dec. 31, 2022

Our leases consist primarily of office and manufacturing space and construction equipment. All of our future lease obligations are related to non-cancelable operating leases. The most significant portion of our lease portfolio relates to leases of office and manufacturing facilities in Canada that we no longer occupy. We currently sublease the majority of these Canadian facilities. The following table provides a summary of lease cost components for the three months ended December 31, 2022 and 2021, respectively (in thousands):


	Three months ended December 31,
Lease Cost	2022		2021
Operating lease cost	$	378	$	571
Less: sublease income	(162)		(174)
Variable lease cost(1)	108		141
Short-term lease cost(2)	387		273
Total lease cost	$	711	$	811

(1) Variable lease cost represents common area maintenance charges related to our Canadian office space lease.

(2) Short-term lease cost includes leases and rentals with initial terms of one year or less.

We recognize operating lease assets and operating lease liabilities representing the present value of the remaining lease payments for leases with initial terms greater than twelve months. Leases with initial terms of twelve months or less are not recorded in our Condensed Consolidated Balance Sheets. As of both December 31, 2022 and September 30, 2022, our operating lease assets have been reduced by a lease accrual of $0.1 million related to certain unused facility leases in Canada. The following table provides a summary of the operating lease assets and operating lease liabilities included in our Condensed Consolidated Balance Sheets as of December 31, 2022 and September 30, 2022, respectively (in thousands):


Operating Leases	December 31, 2022		September 30, 2022
Assets:
Operating lease assets, net	$	2,159	$	2,179
Liabilities:
Current operating lease liabilities	1,545		1,777
Long-term operating lease liabilities	713		545
Total lease liabilities	$	2,258	$	2,322

The following table provides the maturities of our operating lease liabilities as of December 31, 2022 (in thousands):


	Operating Leases
Remainder of 2023	$	1,476
2024	455
2025	195
2026	102
2027	87
Thereafter	7
Total future minimum lease payments	$	2,322
Less: present value discount (imputed interest)	(64)
Present value of lease liabilities	$	2,258

The weighted average discount rate as of December 31, 2022 was 3.61%. The weighted average remaining lease term was 2.04 years at December 31, 2022.