Leases

6 Months Ended

Mar. 31, 2024

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, 2024		September 30, 2023
Assets
Right-of-use assets - operating	$	9,784	$	11,217
Right-of-use assets - finance		106		123
Total right-of-use assets	$	9,890	$	11,340
Liabilities
Current
Operating lease liabilities	$	1,934	$	2,623
Finance lease liabilities		41		64
Total current portion of long-term lease liabilities		1,975		2,687
Long-term
Operating lease liabilities		8,195		8,894
Finance lease liabilities		65		50
Total long-term lease liabilities		8,260		8,944
Total lease liabilities	$	10,235	$	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 March 31,				Six Months Ended March 31,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Cost of sales	$	373	$	688	$	1,118	$	1,149
Operating lease cost	Selling, general and administrative		464		202		668		379
Operating lease cost	Research, development and engineering		3		4		6		7
Finance lease cost	Cost of sales		1		1		2		2
Finance lease cost	Selling, general and administrative		22		18		42		36
Short-term lease cost	Cost of sales		—		9		—		17
Total lease cost		$	863	$	922	$	1,836	$	1,590

Future minimum lease payments under non-cancelable leases as of March 31, 2024 are as follows, in thousands:

	Operating Leases		Finance Leases		Total
Remainder of 2024	$	1,416	$	31	$	1,447
2025		2,059		29		2,088
2026		1,725		29		1,754
2027		1,106		21		1,127
2028		1,115		5		1,120
Thereafter		5,144		—		5,144
Total lease payments		12,565		115		12,680
Less: Interest		2,436		9		2,445
Present value of lease liabilities	$	10,129	$	106	$	10,235

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:

	March 31, 2024			September 30, 2023
Weighted average remaining lease term
Operating leases	7.72 years			7.31 years
Finance leases	4.88 years			2.54 years
Weighted average discount rate
Operating leases		5.60	%		5.50	%
Finance leases		5.52	%		4.91	%

During the fourth quarter of fiscal 2023 and the second quarter of fiscal 2024, we entered into leases that have not yet commenced. We expect to record $8.6 million of ROU asset and lease liability upon the commencement of these leases in the third quarter of fiscal 2024.