| Leases |
4. Leases
The following table provides information about the financial statement classification of our lease balances reported within the Condensed Consolidated Balance Sheets, in thousands:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022 |
|
|
September 30,
2022 |
|
Assets |
|
|
|
|
|
|
Right-of-use assets - operating |
|
$ |
10,832 |
|
|
$ |
11,258 |
|
Right-of-use assets - finance |
|
|
131 |
|
|
|
149 |
|
Total right-of-use assets |
|
$ |
10,963 |
|
|
$ |
11,407 |
|
Liabilities |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Operating lease liabilities |
|
$ |
2,134 |
|
|
$ |
2,101 |
|
Finance lease liabilities |
|
|
71 |
|
|
|
71 |
|
Total current portion of long-term lease liabilities |
|
|
2,205 |
|
|
|
2,172 |
|
Long-term |
|
|
|
|
|
|
Operating lease liabilities |
|
|
8,937 |
|
|
|
9,395 |
|
Finance lease liabilities |
|
|
59 |
|
|
|
76 |
|
Total long-term lease liabilities |
|
|
8,996 |
|
|
|
9,471 |
|
Total lease liabilities |
|
$ |
11,201 |
|
|
$ |
11,643 |
|
The following table provides information about the financial statement classification of our lease expenses reported in the Condensed Consolidated Statements of Operations, in thousands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Lease cost |
|
Classification |
|
2022 |
|
|
2021 |
|
Operating lease cost |
|
Cost of sales |
|
$ |
461 |
|
|
$ |
197 |
|
Operating lease cost |
|
Selling, general and administrative |
|
|
177 |
|
|
|
84 |
|
Operating lease cost |
|
Research, development and engineering |
|
|
3 |
|
|
|
— |
|
Finance lease cost |
|
Cost of sales |
|
|
1 |
|
|
|
1 |
|
Finance lease cost |
|
Selling, general and administrative |
|
|
18 |
|
|
|
16 |
|
Short-term lease cost |
|
Cost of sales |
|
|
8 |
|
|
|
— |
|
Total lease cost |
|
|
|
$ |
668 |
|
|
$ |
298 |
|
Future minimum lease payments under non-cancelable leases as of December 31, 2022, are as follows, in thousands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
|
Finance Leases |
|
|
Total |
|
Remainder of 2023 |
|
$ |
1,917 |
|
|
$ |
57 |
|
|
$ |
1,974 |
|
2024 |
|
|
2,158 |
|
|
|
57 |
|
|
|
2,215 |
|
2025 |
|
|
997 |
|
|
|
9 |
|
|
|
1,006 |
|
2026 |
|
|
871 |
|
|
|
9 |
|
|
|
880 |
|
2027 |
|
|
782 |
|
|
|
3 |
|
|
|
785 |
|
Thereafter |
|
|
7,892 |
|
|
|
— |
|
|
|
7,892 |
|
Total lease payments |
|
|
14,617 |
|
|
|
135 |
|
|
|
14,752 |
|
Less: Interest |
|
|
3,546 |
|
|
|
5 |
|
|
|
3,551 |
|
Present value of lease liabilities |
|
$ |
11,071 |
|
|
$ |
130 |
|
|
$ |
11,201 |
|
Operating lease payments include $6.3 million related to optional lease extension periods for multiple leases that are not yet exercisable but are reasonably certain of being exercised.
The following table provides information about the remaining lease terms and discount rates applied:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022 |
|
|
September 30,
2022 |
|
Weighted average remaining lease term |
|
|
|
|
|
|
Operating leases |
|
12.77 years |
|
|
12.65 years |
|
Finance leases |
|
2.25 years |
|
|
2.45 years |
|
Weighted average discount rate |
|
|
|
|
|
|
Operating leases |
|
|
4.17 |
% |
|
|
4.17 |
% |
Finance leases |
|
|
4.17 |
% |
|
|
4.17 |
% |
|