Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.2
Leases
9 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases

7. Leases

 

The following table provides information about the financial statement classification of our lease balances reported within the Condensed Consolidated Balance Sheets, in thousands:

 

 

 

June 30,
2023

 

 

September 30,
2022

 

Assets

 

 

 

 

 

 

Right-of-use assets - operating

 

$

11,643

 

 

$

11,258

 

Right-of-use assets - finance

 

 

131

 

 

 

149

 

Total right-of-use assets

 

$

11,774

 

 

$

11,407

 

Liabilities

 

 

 

 

 

 

Current

 

 

 

 

 

 

Operating lease liabilities

 

$

2,800

 

 

$

2,101

 

Finance lease liabilities

 

 

78

 

 

 

71

 

Total current portion of long-term lease liabilities

 

 

2,878

 

 

 

2,172

 

Long-term

 

 

 

 

 

 

Operating lease liabilities

 

 

9,120

 

 

 

9,395

 

Finance lease liabilities

 

 

52

 

 

 

76

 

Total long-term lease liabilities

 

 

9,172

 

 

 

9,471

 

Total lease liabilities

 

$

12,050

 

 

$

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 June 30,

 

 

Nine Months Ended June 30,

 

Lease cost

 

Classification

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease cost

 

Cost of sales

 

$

708

 

 

$

292

 

 

$

1,857

 

 

$

687

 

Operating lease cost

 

Selling, general and administrative

 

 

204

 

 

 

41

 

 

 

583

 

 

 

211

 

Operating lease cost

 

Research, development and engineering

 

 

3

 

 

 

10

 

 

 

10

 

 

 

10

 

Finance lease cost

 

Cost of sales

 

 

1

 

 

 

1

 

 

 

3

 

 

 

3

 

Finance lease cost

 

Selling, general and administrative

 

 

20

 

 

 

18

 

 

 

56

 

 

 

53

 

Short-term lease cost

 

Cost of sales

 

 

8

 

 

 

 

 

 

25

 

 

 

 

Total lease cost

 

 

 

$

944

 

 

$

362

 

 

$

2,534

 

 

$

964

 

 

Future minimum lease payments under non-cancelable leases as of June 30, 2023 are as follows, in thousands:

 

 

 

Operating Leases

 

 

Finance Leases

 

 

Total

 

Remainder of 2023

 

$

822

 

 

$

21

 

 

$

843

 

2024

 

 

2,895

 

 

 

67

 

 

 

2,962

 

2025

 

 

1,728

 

 

 

19

 

 

 

1,747

 

2026

 

 

1,380

 

 

 

19

 

 

 

1,399

 

2027

 

 

765

 

 

 

11

 

 

 

776

 

Thereafter

 

 

7,828

 

 

 

1

 

 

 

7,829

 

Total lease payments

 

 

15,418

 

 

 

138

 

 

 

15,556

 

Less: Interest

 

 

3,498

 

 

 

8

 

 

 

3,506

 

Present value of lease liabilities

 

$

11,920

 

 

$

130

 

 

$

12,050

 

 

Operating lease payments include $6.2 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:

 

 

 

June 30,
2023

 

 

September 30,
2022

 

Weighted average remaining lease term

 

 

 

 

 

 

Operating leases

 

11.55 years

 

 

12.65 years

 

Finance leases

 

2.53 years

 

 

2.45 years

 

Weighted average discount rate

 

 

 

 

 

 

Operating leases

 

 

4.54

%

 

 

4.17

%

Finance leases

 

 

4.78

%

 

 

4.17

%

 

As of June 30, 2023, we have entered into a lease that has not yet commenced. We expect to record $2.5 million of ROU asset and lease liability upon the commencement of this new lease in the first quarter of fiscal 2024.