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Leases

3 Months Ended

Dec. 31, 2021

13. Leases

The Company leases certain facilities and equipment under operating leases. In relation to an acquisition that was completed on October 18, 2021 (see Note 4), the Company entered into leases with third parties for certain clubs where the real estate locations were not part of the acquisition.

Total lease expense included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income for the three months ended December 31, 2021 and 2020 is as follows (in thousands):

Schedule of Lease Expense

	Three Months Ended December 31, 2021			Three Months Ended December 31, 2020
Operating lease expense – fixed payments	$	1,131		$	-
Variable lease expense		334			64
Short-term equipment and other lease expense (includes $72 and $57 recorded in advertising and marketing, and $83 and $88 recorded in repairs and maintenance for the three months ended December 31, 2021 and 2020, respectively; see Note 6)		330			229
Sublease income		(2	)		(2	)
Total lease expense, net	$	1,793		$	1,120

Other information:
Operating cash outflows from operating leases	$	1,749		$	1,091
Weighted average remaining lease term – operating leases		12.4 years			12 years
Weighted average discount rate – operating leases		5.7	%		6.1	%

Future maturities of operating lease liabilities as of December 31, 2021 are as follows (in thousands):

Principal Payments Interest Payments Total Payments

January - December 2022 $ 2,288 $ 2,058 $ 4,346

January - December 2023 2,291 1,927 4,218

January - December 2024 2,475 1,790 4,265

January - December 2025 2,702 1,641 4,343

January - December 2026 2,915 1,480 4,395

Thereafter 24,771 6,247 31,018

Future maturities of lease liabilities $ 37,442 $ 15,143 $ 52,585