LEASES

3 Months Ended

Dec. 31, 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 Accounting Standards Codification 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:

	December 31, 2025		September 30, 2025
Operating ROU assets, net	$	56,285	$	46,358
Current portion of operating lease liabilities	6,000		6,896
Long-term operating lease liabilities	55,388		44,344
Total operating lease liabilities	$	61,388	$	51,240
Finance ROU assets, net	$	2,771	$	2,900
Current portion of finance lease liabilities	$	511	495
Long-term finance lease liabilities	2,297		2,430
Total finance lease liabilities	$	2,808	$	2,925

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, 2025 and 2024 were:

	Three Months Ended December 31,
	2025		2024
Operating lease costs:
Fixed operating lease costs	$	3,343	$	3,439
Lease (income)	(857)		(700)
Financing lease costs:
Amortization of ROU asset expense	$	129	$	26
Interest on finance lease liability	89		24
Total operating lease cost	$	2,704	$	2,789

The Company serves as lessor to a lessee in ten 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,
	2025		2024
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,123	$	3,299
Operating cash flows from finance leases	89		23
Financing cash flows from finance leases	117		36
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	11,775	$	3,191
ROU assets obtained in exchange for new finance lease liabilities	—		105

The weighted average remaining lease term and discount rate for the Company’s operating leases as of December 31, 2025 and 2024 were:

	December 31, 2025		December 31, 2024
Weighted-average remaining lease term (in years)
Operating lease	9.40		9.14
Finance lease	5.55		4.30
Weighted-average discount rate (in percentages)
Operating lease	11.58	%	12.47	%
Finance lease	12.57	%	13.46	%

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

As of December 31, 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
2026 (remainder of fiscal year)	$	9,466	$	619
2027	11,847		797
2028	11,615		769
2029	11,149		707
2030	9,808		320
Thereafter	50,276		710
Total minimum future lease payments	104,161		3,922
Less interest	(42,773)		(1,114)
Total lease liability	61,388		2,808

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 Accounting Standards Codification 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:

	December 31, 2025		September 30, 2025
Operating ROU assets, net	$	56,285	$	46,358
Current portion of operating lease liabilities	6,000		6,896
Long-term operating lease liabilities	55,388		44,344
Total operating lease liabilities	$	61,388	$	51,240
Finance ROU assets, net	$	2,771	$	2,900
Current portion of finance lease liabilities	$	511	495
Long-term finance lease liabilities	2,297		2,430
Total finance lease liabilities	$	2,808	$	2,925

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, 2025 and 2024 were:

	Three Months Ended December 31,
	2025		2024
Operating lease costs:
Fixed operating lease costs	$	3,343	$	3,439
Lease (income)	(857)		(700)
Financing lease costs:
Amortization of ROU asset expense	$	129	$	26
Interest on finance lease liability	89		24
Total operating lease cost	$	2,704	$	2,789

The Company serves as lessor to a lessee in ten 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,
	2025		2024
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,123	$	3,299
Operating cash flows from finance leases	89		23
Financing cash flows from finance leases	117		36
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	11,775	$	3,191
ROU assets obtained in exchange for new finance lease liabilities	—		105

The weighted average remaining lease term and discount rate for the Company’s operating leases as of December 31, 2025 and 2024 were:

	December 31, 2025		December 31, 2024
Weighted-average remaining lease term (in years)
Operating lease	9.40		9.14
Finance lease	5.55		4.30
Weighted-average discount rate (in percentages)
Operating lease	11.58	%	12.47	%
Finance lease	12.57	%	13.46	%

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

As of December 31, 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
2026 (remainder of fiscal year)	$	9,466	$	619
2027	11,847		797
2028	11,615		769
2029	11,149		707
2030	9,808		320
Thereafter	50,276		710
Total minimum future lease payments	104,161		3,922
Less interest	(42,773)		(1,114)
Total lease liability	61,388		2,808