We have entered into a number of facility and equipment leases which qualify as operating leases under GAAP. We also have a limited number of equipment leases that qualify as finance leases.

The following table presents certain information related to lease term and incremental borrowing rates for leases as of December 31, 2024 and September 30, 2024:


	December 31, 2024			September 30, 2024
Weighted-average remaining lease term (in months):
Operating leases		47.9			46.0
Finance leases		10.2			13.4
Weighted-average discount rate:
Operating leases		6.8	%		6.6	%
Finance leases		4.4	%		4.4	%

The following table presents lease expense for the three months ended December 31, 2024 and 2023 (dollars in thousands):


	Three Months Ended December 31,
	2024			2023
Finance lease costs:
Amortization of right of use asset	$	96		$	108
Interest on lease liability		3			7
Operating lease cost		1,410			1,628
Variable lease cost		455			764
Sublease income		(43	)		(60	)
Total lease cost	$	1,921		$	2,447

For the three months ended December 31, 2024 and 2023, cash payments related to operating leases were $1.3 million and $1.7 million, respectively. For the three months ended December 31, 2024 and 2023, cash payments related to finance leases were $0.1 million and $0.1 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. For the three months ended December 31, 2024 and 2023, right of use assets obtained in exchange for lease obligations were $2.0 million and $1.5 million, respectively.

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized on the Condensed Consolidated Balance Sheet as of December 31, 2024 (dollars in thousands):


Year Ending September 30,	Operating Leases			Financing Leases			Total
2025	$	3,702		$	259		$	3,961
2026		3,698			53			3,751
2027		3,302			—			3,302
2028		2,691			—			2,691
2029		1,986			—			1,986
Thereafter		764			—			764
Total future minimum lease payments	$	16,143		$	312		$	16,455
Less effects of discounting		(2,244	)		(4	)		(2,248	)
Total lease liabilities	$	13,899		$	308		$	14,207
Reported as of December 31, 2024
Short-term lease liabilities	$	3,828		$	282		$	4,110
Long-term lease liabilities		10,071			26			10,097
Total lease liabilities	$	13,899		$	308		$	14,207