Leases

12 Months Ended

Sep. 28, 2024

The Company leases office space in Wilmington, MA and Montreal, QC through operating lease arrangements. The Company has no finance lease agreements. The operating lease arrangements expire at various dates through December 2030.

The following table presents the balance sheet location of the Company’s operating leases (in thousands):


	September 28, 2024
ROU assets:
Other long-term assets	$	15,257

Lease Liabilities:
Accrued expenses and other current liabilities	$	1,647
Other long-term liabilities	16,076
Total lease liabilities	$	17,723

The following table presents maturities of the Company’s operating lease liabilities as of September 28, 2024, presented under ASC Topic 842 (in thousands):


	September 28, 2024
Fiscal year 2025	$	2,957
Fiscal year 2026	3,408
Fiscal year 2027	3,681
Fiscal year 2028	3,791
Fiscal year 2029 and thereafter	8,955
Total future minimum payments	$	22,792
Less: Implied interest	(5,069)
Total lease liabilities	$	17,723

As of September 28, 2024, the weighted-average remaining lease term and the weighted-average incremental borrowing rate of the Company’s operating leases was approximately 5.88 years and 8.0%, respectively. Operating cash flows for amounts included in the measurement of the Company’s operating lease liabilities were $1.6 million for the year ended September 28, 2024. Net rental expense under operating leases was $4.8 million for the year ended September 28, 2024, $3.0 million for the year ended September 30, 2023, and $2.4 million for the year ended September 24, 2022.

As previously disclosed in our fiscal year 2022 Annual Report on Form 10-K and under the previous lease accounting standard, the future minimum lease payments under all noncancellable operating lease agreements as of September 24, 2022 are as follows (in thousands):


	Total
Fiscal year 2023	$	2,301
Fiscal year 2024	2,335
Fiscal year 2025	2,037
Fiscal year 2026	557
Fiscal year 2027 and thereafter	—
Total future minimum payments	$	7,230