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LEASES | 12 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
LEASES AND GAIN ON SALE OF ASSET | LEASES The Company’s right-of-use (“ROU”) assets and lease liabilities at September 30, 2021, primarily relate to non-cancelable operating leases for our Hawaii corporate and Canadian office spaces and our leasehold land interest for Lot 4C held by Kaupulehu Developments. Management determines if a contract is or contains a lease at inception of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of the asset for a period in exchange for consideration. Operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. The Company’s leases do not provide a readily determinable implicit rate; therefore, management uses the Company’s incremental borrowing rate to discount lease payments based on information available at lease commencement. Our lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease terms. The Company has lease agreements with lease and non-lease components and the non-lease components are excluded in the calculation of the ROU asset and lease liability and expensed as incurred. None of the Company’s lease agreements contain material residual value guarantees or material restrictions or covenants. A ROU asset and corresponding lease liability is not recorded for leases with an initial term of 12 months or less (short-term leases) as the Company recognizes lease expense for these leases as incurred over the lease term. Leases recorded on the balance sheet consist of the following:
|  | September 30,
|  | 2021 |  | 2020
Assets: |  |  |
| Operating lease right-of-use assets | $ | 296,000 |  |  | $ | 249,000 |
| Total right-of-use assets | $ | 296,000 |  |  | $ | 249,000 |
Liabilities: |  |  |
| Current portion of operating lease liabilities | $ | 117,000 |  |  | $ | 111,000 |
| Operating lease liabilities | 180,000 |  |  | 143,000 |
| Total lease liabilities | $ | 297,000 |  |  | $ | 254,000 |
The components of lease expenses are as follows:
| Year ended September 30,
| 2021 |  | 2020
Operating lease cost | $ | 130,000 |  |  | $ | 334,000 |
Short-term lease cost | 254,000 |  |  | 69,000 |
Variable lease cost | 103,000 |  |  | — |
Total lease cost | $ | 487,000 |  |  | $ | 403,000 |
Supplemental information related to leases is as follows:
|  | September 30,
|  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flows from operating leases | $ | 133,000 |  |  | $ | 189,000 |
Operating leases: |  |  |
| Weighted-average remaining lease term (in years) | 2.9 |  | 3.4
| Weighted-average discount rate | 5.19% |  | 5.85%
The remaining lease payments for our operating leases as of September 30, 2021, are as follows:
Fiscal year ending: |
2022 | $ | 129,000 |
2023 | 97,000 |
2024 | 58,000 |
2025 | 30,000 |
2026 | 7,000 |
Thereafter through 2027 | — |
Total lease payments | 321,000 |
Less: amounts representing interest | (24,000) |
Present value of lease liabilities | $ | 297,000 |
The lease payments for the Lot 4C leasehold land were subject to renegotiation as of January 1, 2006. Per the lease agreement, the lease payments will remain unchanged pending an appraisal, whereupon the lease rent could be adjusted to fair market value. Barnwell does not know the amount of the new lease payments which could be effective upon performance of the appraisal; they may remain unchanged or increase, and Barnwell currently expects the adjustment, if any, to not be material. The future lease payment disclosures above assume the minimum lease payments for leasehold land in effect at December 31, 2005 remain unchanged through December 2025, the end of the lease term. Gain on sale of leased asset In March 2020, the Company sold its leasehold interest in a three-quarter of an acre contract drilling segment maintenance and storage yard in Honolulu, Hawaii to an unrelated third party for a $1,100,000 cash payment. As a result of the sale transaction, the Company recognized a gain of $1,336,000, inclusive of a $236,000 gain from the reversal of the storage yard's lease liability in excess of the right-of-use asset, in the year ended September 30, 2020.

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- 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
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