Accounts payable and accrued expenses, and Other noncurrent liabilities

9 Months Ended

Jun. 30, 2025

Accounts payable and accrued expenses, and Other noncurrent liabilities

Accounts payable and accrued expenses, and Other noncurrent liabilities

8.            Accounts payable and accrued expenses, and Other noncurrent liabilities

The TS US division enters into certain multi-year agreements with vendors when also entering into some of the multi-year financing contracts the Company enters into with customers. See Note 5 Financing receivables, net for further information related to the multi-year agreements with customers.

There was not an interest rate stated in the agreements and therefore interest was imputed under ASC 835 Interest as the payments in the exchange represented two elements: principal and interest. The average imputed interest rate for the agreements was determined to be 9.4% as of June 30, 2025. The rate was determined primarily based on the rate the Company could obtain by financing from other sources at the date of the transaction.

Interest expense related to these agreements for the three months ended June 30, 2025 and 2024 was $101 thousand and $52 thousand, respectively. Interest expense related to these agreements for the nine months ended June 30, 2025 and 2024 was $251 thousand and $139 thousand, respectively.

The amounts owed for these agreements are in Accounts payable and accrued expenses and Other noncurrent liabilities because they are owed to vendors rather than banks or financial institutions for borrowings. See Note 9 Line of Credit for amounts due to financial institutions for borrowings.

Below are details of the agreements with the vendors that contain imputed interest:

	June 30, 2025		September 30, 2024
	(Amounts in thousands)
Current	$	2,129	$	2,553
Less: discount		(265)		(244)
Accounts payable and accrued expenses	$	1,864	$	2,309
Noncurrent	$	2,159	$	1,677
Less: discount		(101)		(146)
Other noncurrent liabilities	$	2,058	$	1,531

The TS segment has many vendors it transacts with and does not have any specific agreement with these vendors that it must purchase certain products from the vendor. Management believes other suppliers could provide similar products on comparable terms.