Leases

6 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

6. Leases

The following table provides information about the financial statement classification of our lease balances reported within the Condensed Consolidated Balance Sheets, in thousands:

	March 31, 2023		September 30, 2022
Assets
Right-of-use assets - operating	$	12,448	$	11,258
Right-of-use assets - finance		113		149
Total right-of-use assets	$	12,561	$	11,407
Liabilities
Current
Operating lease liabilities	$	2,771	$	2,101
Finance lease liabilities		71		71
Total current portion of long-term lease liabilities		2,842		2,172
Long-term
Operating lease liabilities		9,953		9,395
Finance lease liabilities		41		76
Total long-term lease liabilities		9,994		9,471
Total lease liabilities	$	12,836	$	11,643

The following table provides information about the financial statement classification of our lease expenses reported in the Condensed Consolidated Statements of Operations, in thousands:

		Three Months Ended March 31,				Six Months Ended March 31,
Lease cost	Classification	2023		2022		2023		2022
Operating lease cost	Cost of sales	$	688	$	198	$	1,149	$	395
Operating lease cost	Selling, general and administrative		202		86		379		170
Operating lease cost	Research, development and engineering		4		—		7		—
Finance lease cost	Cost of sales		1		1		2		2
Finance lease cost	Selling, general and administrative		18		19		36		35
Short-term lease cost	Cost of sales		9		—		17		—
Total lease cost		$	922	$	304	$	1,590	$	602

Future minimum lease payments under non-cancelable leases, including leases that are executed but not yet effective, as of March 31, 2023 are as follows, in thousands:

	Operating Leases		Finance Leases		Total
Remainder of 2023	$	1,645	$	39	$	1,684
2024		2,895		59		2,954
2025		1,739		12		1,751
2026		1,404		12		1,416
2027		789		6		795
Thereafter		7,913		1		7,914
Total lease payments		16,385		129		16,514
Less: Interest		3,661		6		3,667
Present value of lease liabilities	$	12,724	$	123	$	12,847

Operating lease payments include $6.3 million related to optional lease extension periods for multiple leases that are not yet exercisable but are reasonably certain of being exercised.

The following table provides information about the remaining lease terms and discount rates applied:

	March 31, 2023			September 30, 2022
Weighted average remaining lease term
Operating leases	11.32 years			12.65 years
Finance leases	2.07 years			2.45 years
Weighted average discount rate
Operating leases		4.54	%		4.17	%
Finance leases		4.17	%		4.17	%