Leases

3 Months Ended

Dec. 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:

	December 31, 2023		September 30, 2023
Assets
Right-of-use assets - operating	$	10,541	$	11,217
Right-of-use assets - finance		110		123
Total right-of-use assets	$	10,651	$	11,340
Liabilities
Current
Operating lease liabilities	$	2,292	$	2,623
Finance lease liabilities		49		64
Total current portion of long-term lease liabilities		2,341		2,687
Long-term
Operating lease liabilities		8,598		8,894
Finance lease liabilities		46		50
Total long-term lease liabilities		8,644		8,944
Total lease liabilities	$	10,985	$	11,631

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 December 31,
Lease cost	Classification	2023		2022
Operating lease cost	Cost of sales	$	745	$	461
Operating lease cost	Selling, general and administrative		204		177
Operating lease cost	Research, development and engineering		3		3
Finance lease cost	Cost of sales		1		1
Finance lease cost	Selling, general and administrative		20		18
Short-term lease cost	Cost of sales		—		8
Total lease cost		$	973	$	668

Future minimum lease payments under non-cancelable leases as of December 31, 2023 are as follows, in thousands:

	Operating Leases		Finance Leases		Total
Remainder of 2024	$	2,317	$	47	$	2,364
2025		2,060		21		2,081
2026		1,726		21		1,747
2027		1,107		11		1,118
2028		1,115		2		1,117
Thereafter		5,146		—		5,146
Total lease payments		13,471		102		13,573
Less: Interest		2,581		7		2,588
Present value of lease liabilities	$	10,890	$	95	$	10,985

Operating lease payments include $2.3 million related to options to extend lease terms that are reasonably certain of being exercised.

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

	December 31, 2023			September 30, 2023
Weighted average remaining lease term
Operating leases	7.37 years			7.31 years
Finance leases	2.53 years			2.54 years
Weighted average discount rate
Operating leases		5.55	%		5.50	%
Finance leases		5.03	%		4.91	%

During the fourth quarter of fiscal 2023, we entered into a lease, which has not yet commenced. We expect to record $7.1 million of ROU asset and lease liability upon the commencement of this new lease in the third quarter of fiscal 2024.