LEASES

9 Months Ended

Jun. 30, 2025

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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations.

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

	June 30, 2025		September 30, 2024
Operating ROU assets, net	$	44,930	$	49,165
Current portion of operating lease liabilities	8,845		11,774
Long-term operating lease liabilities	40,085		40,010
Total operating lease liabilities	$	48,930	$	51,784
Finance ROU assets, net	$	2,734	$	652
Current portion of finance lease liabilities	$	426	211
Long-term finance lease liabilities	2,316		433
Total finance lease liabilities	$	2,742	$	644

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 and nine months ended June 30, 2025 and 2024 were:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Operating lease costs:
Fixed operating lease costs	$	3,355	$	3,448	$	10,197	$	10,042
Lease (income)	(656)		(753)		(1,888)		(2,311)
Financing lease costs:
Amortization of ROU asset expense	$	113	$	22	$	262	$	58
Interest on finance lease liability	87		6		219		15
Total operating lease cost	$	2,899	$	2,723	$	8,790	$	7,804

The Company serves as lessor to a lessee in nine 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:

	Nine Months Ended June 30,
	2025		2024
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,277	$	8,906
Operating cash flows from finance leases	218		68
Financing cash flows from finance leases	235		15
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	3,205	$	12,858
ROU assets obtained in exchange for new finance lease liabilities	2,294		191

The weighted average remaining lease term and discount rate for the Company’s operating leases as of June 30, 2025 and 2024 were:

	June 30, 2025		June 30, 2024
Weighted-average remaining lease term (in years)
Operating lease	9.36		8.83
Finance lease	6.10		2.10
Weighted-average discount rate (in percentages)
Operating lease	12.58	%	11.92	%
Finance lease	12.66	%	12.77	%

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

As of June 30, 2025, maturities of operating and finance lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

	Operating Leases		Finance Leases
2025 (remainder of fiscal year)	$	3,197	$	186
2026	11,551		740
2027	9,801		712
2028	8,615		683
2029	7,862		639
Thereafter	48,323		995
Total minimum future lease payments	89,349		3,955
Less interest	(40,419)		(1,213)
Total lease liability	48,930		2,742

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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations.

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

	June 30, 2025		September 30, 2024
Operating ROU assets, net	$	44,930	$	49,165
Current portion of operating lease liabilities	8,845		11,774
Long-term operating lease liabilities	40,085		40,010
Total operating lease liabilities	$	48,930	$	51,784
Finance ROU assets, net	$	2,734	$	652
Current portion of finance lease liabilities	$	426	211
Long-term finance lease liabilities	2,316		433
Total finance lease liabilities	$	2,742	$	644

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 and nine months ended June 30, 2025 and 2024 were:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Operating lease costs:
Fixed operating lease costs	$	3,355	$	3,448	$	10,197	$	10,042
Lease (income)	(656)		(753)		(1,888)		(2,311)
Financing lease costs:
Amortization of ROU asset expense	$	113	$	22	$	262	$	58
Interest on finance lease liability	87		6		219		15
Total operating lease cost	$	2,899	$	2,723	$	8,790	$	7,804

The Company serves as lessor to a lessee in nine 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:

	Nine Months Ended June 30,
	2025		2024
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,277	$	8,906
Operating cash flows from finance leases	218		68
Financing cash flows from finance leases	235		15
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	3,205	$	12,858
ROU assets obtained in exchange for new finance lease liabilities	2,294		191

The weighted average remaining lease term and discount rate for the Company’s operating leases as of June 30, 2025 and 2024 were:

	June 30, 2025		June 30, 2024
Weighted-average remaining lease term (in years)
Operating lease	9.36		8.83
Finance lease	6.10		2.10
Weighted-average discount rate (in percentages)
Operating lease	12.58	%	11.92	%
Finance lease	12.66	%	12.77	%

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

As of June 30, 2025, maturities of operating and finance lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

	Operating Leases		Finance Leases
2025 (remainder of fiscal year)	$	3,197	$	186
2026	11,551		740
2027	9,801		712
2028	8,615		683
2029	7,862		639
Thereafter	48,323		995
Total minimum future lease payments	89,349		3,955
Less interest	(40,419)		(1,213)
Total lease liability	48,930		2,742