LEASES

3 Months Ended

Dec. 31, 2024

Leases [Abstract]

LEASES

.    LEASES

The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The Company recognizes lease expense for the leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.

The Company has various operating and finance leases for facilities and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Equipment leases provide for office equipment, laboratory equipment or services the Company uses to conduct its operations.

ROU lease assets and operating lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:

	December 31, 2024		September 30, 2024
Operating ROU assets, net	$	48,827	$	49,165
Current portion of operating lease liabilities	9,505		11,774
Long-term operating lease liabilities	41,588		40,010
Total operating lease liabilities	$	51,093	$	51,784

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three months ended December 31, 2024 and 2023 were:

	Three Months Ended December 31,
	2024		2023
Operating lease costs:
Fixed operating lease costs	$	3,439	$	3,103
Lease income	(700)		(764)
Total operating lease cost	$	2,739	$	2,339

The Company serves as lessor to a lessee in five facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The rent receivables and underlying lease liabilities are presented gross in the Company’s condensed consolidated balance sheets.

Supplemental cash flow information related to leases was as follows:

	Three Months Ended December 31,
	2024		2023
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,299	$	2,966
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	3,191	$	11,392

The weighted average remaining lease term and discount rate for the Company’s operating leases as of December 31, 2024 and 2023 were:

	December 31, 2024		December 31, 2023
Weighted-average remaining lease term (in years)
Operating lease	9.14		8.96
Weighted-average discount rate (in percentages)
Operating lease	12.47	%	11.75	%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of December 31, 2024, maturities of operating lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

	Operating Leases
2025 (remainder of fiscal year)	$	8,035
2026	11,739
2027	9,786
2028	8,619
2029	7,870
Thereafter	48,342
Total minimum future lease payments	94,391
Less interest	(43,298)
Total lease liability	51,093

LEASES

.    LEASES

The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The Company recognizes lease expense for the leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.

The Company has various operating and finance leases for facilities and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Equipment leases provide for office equipment, laboratory equipment or services the Company uses to conduct its operations.

ROU lease assets and operating lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:

	December 31, 2024		September 30, 2024
Operating ROU assets, net	$	48,827	$	49,165
Current portion of operating lease liabilities	9,505		11,774
Long-term operating lease liabilities	41,588		40,010
Total operating lease liabilities	$	51,093	$	51,784

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three months ended December 31, 2024 and 2023 were:

	Three Months Ended December 31,
	2024		2023
Operating lease costs:
Fixed operating lease costs	$	3,439	$	3,103
Lease income	(700)		(764)
Total operating lease cost	$	2,739	$	2,339

The Company serves as lessor to a lessee in five facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The rent receivables and underlying lease liabilities are presented gross in the Company’s condensed consolidated balance sheets.

Supplemental cash flow information related to leases was as follows:

	Three Months Ended December 31,
	2024		2023
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,299	$	2,966
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	3,191	$	11,392

The weighted average remaining lease term and discount rate for the Company’s operating leases as of December 31, 2024 and 2023 were:

	December 31, 2024		December 31, 2023
Weighted-average remaining lease term (in years)
Operating lease	9.14		8.96
Weighted-average discount rate (in percentages)
Operating lease	12.47	%	11.75	%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of December 31, 2024, maturities of operating lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

	Operating Leases
2025 (remainder of fiscal year)	$	8,035
2026	11,739
2027	9,786
2028	8,619
2029	7,870
Thereafter	48,342
Total minimum future lease payments	94,391
Less interest	(43,298)
Total lease liability	51,093