LEASES

9 Months Ended

Jun. 30, 2024

10. LEASES

Leases

The Company leases office and research and development facility space under non-cancelable operating leases for various terms through 2030. Certain lease agreements include renewal options, rent abatement periods, and rental increases throughout the term. As of June 30, 2024, the weighted-average remaining lease term for the Company’s operating leases was 4.9 years and the weighted-average discount rate was 2.8%.

As of June 30, 2024, the Company had operating ROU assets of $2.8 million. As of June 30, 2024, total operating lease liabilities of $3.2 million were comprised of current lease liabilities of $0.8 million and non-current lease liabilities of $2.4 million. As of September 30, 2023, the Company had operating ROU assets of $4.1 million. As of September 30, 2023, total operating lease liabilities of $4.8 million were comprised of current lease liabilities of $1.9 million and non-current lease liabilities of $2.9 million.

The Company recognized $0.6 million and $0.5 million of operating lease costs in the three months ended June 30, 2024 and 2023, respectively. The Company recognized $1.5 million of operating lease costs in each of the nine months ended June 30, 2024 and 2023. Operating lease costs are included within cost of revenue, selling and marketing, research and development, and general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of operations and comprehensive income (loss).

The Company paid $1.7 million in operating cash flows for operating leases in the nine months ended June 30, 2024.

Maturities of operating lease liabilities as of June 30, 2024 were as follows (amounts in thousands):


	Operating leases(1)
2024 - remaining	$	241
2025	722
2026	711
2027	625
2028	418
2029 and thereafter	582

Total lease payments	3,299
Less: amount representing interest	(143)
Present value of future lease payments	$	3,156

(1) Excludes approximately $1.8 million of legally binding minimum lease payments for an office lease signed but not yet commenced.