Leases

6 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

5. 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, 2025		September 30, 2024
Assets
Right-of-use assets - operating	$	15,436	$	16,596
Right-of-use assets - finance		185		227
Total right-of-use assets	$	15,621	$	16,823
Liabilities
Current
Operating lease liabilities	$	2,141	$	2,041
Finance lease liabilities		104		101
Total current portion of long-term lease liabilities		2,245		2,142
Long-term
Operating lease liabilities		14,143		15,240
Finance lease liabilities		135		189
Total long-term lease liabilities		14,278		15,429
Total lease liabilities	$	16,523	$	17,571

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	2025		2024		2025		2024
Operating lease cost	Cost of sales	$	460	$	373	$	919	$	1,118
Operating lease cost	Selling, general and administrative		364		464		727		668
Operating lease cost	Research, development and engineering		3		3		6		6
Finance lease cost	Cost of sales		—		1		—		2
Finance lease cost	Selling, general and administrative		25		22		50		42
Total lease cost		$	852	$	863	$	1,702	$	1,836

Future minimum lease payments under non-cancelable leases as of March 31, 2025 are as follows, in thousands:

	Operating Leases		Finance Leases		Total
Remainder of 2025	$	1,574	$	59	$	1,633
2026		2,868		117		2,985
2027		2,287		77		2,364
2028		2,326		5		2,331
2029		2,370		—		2,370
Thereafter		10,031		—		10,031
Total lease payments		21,456		258		21,714
Less: Interest		5,172		19		5,191
Present value of lease liabilities	$	16,284	$	239	$	16,523

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, 2025			September 30, 2024
Weighted average remaining lease term
Operating leases	8.18 years			8.47 years
Finance leases	2.24 years			2.73 years
Weighted average discount rate
Operating leases		6.63	%		6.58	%
Finance leases		6.44	%		6.43	%