XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 12 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases | Leases We have leases for facilities and office equipment. Our lease liabilities are recognized as the present value of the future minimum lease payments over the lease term. Our right-of-use assets are recognized as the present value of the future minimum lease payments over the lease term less unamortized lease incentives and the balance remaining in deferred rent liability under ASC 840. Our lease payments consist of fixed and in-substance fixed amounts attributable to the use of the underlying asset over the lease term. Variable lease payments that do not depend on an index rate or are not in-substance fixed payments are excluded in the measurement of right-of-use assets and lease liabilities and are expensed in the period incurred. The incremental borrowing rate on our credit facility is used in determining the present value of future minimum lease payments. Some of our lease agreements include options to extend the lease term or terminate the lease. These options are accounted for in our right-of-use assets and lease liabilities when it is reasonably certain that the Company will extend the lease term or terminate the lease. The Company does not have any finance leases. Upon the adoption of ASC 842, we recorded operating lease right-of-use assets of $17.4 million, current and long-term operating lease liabilities of $3.6 million and $14.4 million, and a $2 thousand cumulative adjustment to accumulated deficit. The impact of adopting the standard on our consolidated balance sheet at October 1, 2019 is as follows:
(in thousands) | Ref | September 30, 2019 |  | ASC 842 Adjustments |  | October 1, 2019
Long-term assets: |  |  |  |  |  |
Operating leases right-of-use assets |  | $ | — |  |  | $ | 17,398 |  |  | $ | 17,398 |
Current liabilities: |  |  |  |  |  |
Deferred rent liability - short-term | (a) | 44 |  |  | (44) |  |  | — |
Operating leases liabilities - current |  | — |  |  | 3,645 |  |  | 3,645 |
Long-term liabilities: |  |  |  |  |  |
Deferred rent liability - long-term | (b) | 276 |  |  | (276) |  |  | — |
Unamortized tenant improvement allowance | (c) | 297 |  |  | (297) |  |  | — |
Operating leases liabilities - long-term |  | — |  |  | 14,372 |  |  | 14,372 |
Shareholders' equity: |  |  |  |  |  |
Accumulated deficit |  | (39,555) |  |  | (2) |  |  | (39,557) |
Ref (a): The balance of short-term deferred rent liability presented in our annual 10K report within accounts payable, accrued expenses, and other accrued liabilities on our consolidated balance sheet at September 30, 2019. Ref (b): The balance of long-term deferred rent liability presented in our annual 10K report within other long-term liabilities on our consolidated balance sheet at September 30, 2019. Ref (c): The balance of unamortized tenant improvement allowance presented in our annual 10K report within other long-term liabilities on our consolidated balance sheet at September 30, 2019. The Company executed a modification of a lease during the fiscal quarter ending December 31, 2019 and recognized adjustments to the right-of-use asset and lease liabilities in accordance with ASC 842. As a result of the modification, a gain of $0.1 million was recognized. The gain represents the difference between the change in values of the right-of-use-asset and lease liabilities, which were $7.3 million and $7.2 million, respectively. For the year ended September 30, 2020, the increase to right-of-use assets and lease liabilities related to the modification was $24.7 million and $25.2 million, respectively. For more information, refer to Note 7. Supporting Financial Information. As of September 30, 2020, operating leases for facilities and equipment have remaining lease terms of 0.6 to 10.5 years. The following table summarizes lease balances in our consolidated balance sheet at September 30, 2020:
| (in thousands)
| September 30, 2020
Operating lease right-of-use assets | $ | 22,427 |
Operating lease liabilities, current | $ | 2,045 |
Operating lease liabilities - long-term | 21,620 |
Total operating lease liabilities | $ | 23,665 |
The Company subleases a portion of one of its leased facilities. The sublease is classified as an operating lease with respect to the underlying asset. The sublease was assumed from the acquisition in fiscal 2019. During the year ended September 30, 2020, the sublease was amended with the new terms commencing in July 2020. The sublease term is 5 years with two additional 1 year term extension options. The Company's lease costs are included within general and administrative costs in our Consolidated Statements of Operations. For the year ended September 30, 2020, total lease costs for our operating leases are as follows:
| (in thousands)
| Year Ended
| September 30, 2020 |  |
Operating | $ | 4,236 |  |  |
Short-term | 155 |  |  |
Variable | 63 |  |  |
Sublease income | (271) |  |  |
Total lease costs | $ | 4,183 |  |  |
Other information related to our leases are as follows:
| Ref | September 30, 2020
Weighted-average remaining lease term |  | 9.1 years
Weighted-average discount rate | (a) | 5.99 | %
Ref (a): Calculation based off of borrowing terms from senior credit facility.
|  | (in thousands)
|  | Year Ended
|  | September 30, 2020 |  |
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 3,586 |  |  |
Lease liabilities arising from obtaining right-of-use-assets |  | $ | 229 |  |  |
The Company's future minimum lease payments as of September 30, 2020 are as follows:
For the Fiscal Year Ending September 30, | (in thousands)
2021 | $ | 3,408 |
2022 | 3,501 |
2023 | 3,375 |
2024 | 3,251 |
2025 | 3,092 |
Thereafter | 14,684 |
Total future minimum lease payments | 31,311 |
Less: imputed interest | (7,646) |
Present value of future minimum lease payments | 23,665 |
Less: current portion of operating lease liabilities | (2,045) |
Long-term operating lease liabilities | $ | 21,620 |
Under ASC 840, the Company's future minimum lease payments for the prior fiscal year ended September 30, 2019 were as follows:
For the Fiscal Year Ending September 30, | (in thousands)
2020 | $ | 3,484 |
2021 | 3,051 |
2022 | 3,136 |
2023 | 3,166 |
2024 | 3,100 |
Thereafter | 16,945 |
Total future minimum lease payments | $ | 32,882 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration