Leases

9 Months Ended

Jun. 30, 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:

	June 30, 2024		September 30, 2023
Assets
Right-of-use assets - operating	$	17,559	$	11,217
Right-of-use assets - finance		197		123
Total right-of-use assets	$	17,756	$	11,340
Liabilities
Current
Operating lease liabilities	$	1,856	$	2,623
Finance lease liabilities		83		64
Total current portion of long-term lease liabilities		1,939		2,687
Long-term
Operating lease liabilities		16,129		8,894
Finance lease liabilities		177		50
Total long-term lease liabilities		16,306		8,944
Total lease liabilities	$	18,245	$	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 June 30,				Nine Months Ended June 30,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Cost of sales	$	617	$	708	$	1,735	$	1,857
Operating lease cost	Selling, general and administrative		375		204		1,043		583
Operating lease cost	Research, development and engineering		3		3		9		10
Finance lease cost	Cost of sales		—		1		2		3
Finance lease cost	Selling, general and administrative		38		20		80		56
Short-term lease cost	Cost of sales		—		8		—		25
Total lease cost		$	1,033	$	944	$	2,869	$	2,534

Future minimum lease payments under non-cancelable leases as of June 30, 2024 are as follows, in thousands:

	Operating Leases		Finance Leases		Total
Remainder of 2024	$	554	$	25	$	579
2025		3,065		98		3,163
2026		2,870		98		2,968
2027		2,290		60		2,350
2028		2,330		5		2,335
Thereafter		12,386		—		12,386
Total lease payments		23,495		286		23,781
Less: Interest		5,510		26		5,536
Present value of lease liabilities	$	17,985	$	260	$	18,245

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:

	June 30, 2024			September 30, 2023
Weighted average remaining lease term
Operating leases	8.66 years			7.31 years
Finance leases	2.93 years			2.54 years
Weighted average discount rate
Operating leases		6.01	%		5.50	%
Finance leases		6.18	%		4.91	%