Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.2.2
Leases
12 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases

Note 14. Leases

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This guidance requires entities that sign leases as a lessee to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under previous U.S. GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP. The Company adopted ASU 2016-02 on October 1, 2019.

The Company determines whether an arrangement is a lease at inception. The Company’s leases consist of operating lease arrangements for certain office space, tractor leases and IT facilities. When these lease arrangements include lease and non-lease components, the Company accounts for lease components and non-lease components (e.g., common area maintenance) separately based on their relative standalone prices.

Any lease arrangements with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets, and it recognizes lease cost for these lease arrangements on a straight-line basis over the applicable lease term. Many lease arrangements provide the options to exercise one or more renewal terms or to terminate the lease arrangement. When the options are reasonably certain to be exercised the Company includes these options when it will be reasonably certain to exercise them in the lease term used to establish the right-of-use assets and lease liabilities. Generally, lease agreements do not include an option to purchase the leased asset, residual value guarantees or material restrictive covenants.

As most of our lease arrangements do not provide an implicit interest rate, the Company applies an incremental borrowing rate based on the information available at the commencement date of the lease arrangement to determine the present value of lease payments.

No lease costs associated with finance leases and sale-leaseback transactions occurred and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements.

Our operating leases are reported in our Consolidated Balance Sheets as follows:

(in thousands)

 

 

 

 

September 30,

 

 

September 30,

 

Operating lease components

 

Classification

 

2022

 

 

2021

 

Right-of-use assets – non-current

 

Other non-current assets

 

$

755

 

 

$

288

 

Current lease liabilities

 

Other current liabilities

 

$

415

 

 

$

323

 

Non-current lease liabilities

 

Other liabilities

 

$

386

 

 

$

42

 

 

Our operating leases cost components are reported in our Consolidated Statements of Operations as follows:

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

Operating lease components

 

Classification

 

2022

 

 

2021

 

Grove management services revenue

 

Operating revenue

 

$

116

 

 

$

306

 

Grove management services cost-of-sales

 

Operating expenses

 

$

116

 

 

$

306

 

Operating lease costs

 

General and administrative expenses

 

$

85

 

 

$

198

 

 

Future maturities of our operating lease obligations as of September 30, 2022 by fiscal year are as follows:

 

(in thousands)

 

 

 

 

 

2023

 

 

 

$

446

 

2024

 

 

 

 

164

 

2025

 

 

 

 

97

 

2026

 

 

 

 

100

 

2027

 

 

 

 

15

 

Total noncancelable future lease obligations

 

 

 

$

822

 

Less: Interest

 

 

 

 

(21

)

Present value of lease obligations

 

 

 

$

801

 

 

 

 

 

 

September 30,
2022

Weighted-average remaining lease term

 

 

 

1.94 years

Weighted-average discount rate

 

 

 

1.81

%

 

 

Cash flow information related to leases consists of the following:

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2022

 

 

September 30,
2021

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

 

$

302

 

 

$

519

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

 

 

$

 

 

$