Leases

12 Months Ended

Aug. 31, 2025

The Company leases real estate for its regional sales offices, a research and development facility, and offices located at its international subsidiaries and branch locations. The Company also leases an automobile fleet in the United States. In addition, the Company has identified warehouse leases within certain third-party distribution center service contracts and a lease of a blending room within a third-party manufacturing contract. All other leases are insignificant to the Company’s consolidated financial statements.

Right-of-use assets and lease liabilities consisted of the following (in thousands):


	August 31, 2025		August 31, 2024
Assets:
Operating lease right-of-use assets	$	10,385	$	8,077
Finance lease right-of-use asset	3,149		3,534
Total right-of-use assets	$	13,534	$	11,611

Liabilities:
Current operating lease liabilities(1)	$	2,282	$	2,294
Long-term operating lease liabilities	8,423		5,904
Total operating lease liabilities	$	10,705	$	8,198

(1)Current operating lease liabilities are classified in accrued liabilities on the Company’s consolidated balance sheets.

The Company’s maturities of its operating lease liabilities, including early termination and renewal options that management is reasonably certain to exercise, are as follows as of August 31, 2025 (in thousands):


	Operating Leases
Fiscal year 2026	$	2,844
Fiscal year 2027	2,237
Fiscal year 2028	1,522
Fiscal year 2029	1,458
Fiscal year 2030	1,372
Thereafter	3,114
Total undiscounted future cash flows	$	12,547
Less: Interest	(1,842)
Present value of lease liabilities	$	10,705

The Company recorded $2.6 million and $2.3 million in lease expense during the fiscal years ended August 31, 2025 and 2024, respectively. This lease expense was included in selling, general and administrative expenses. The Company recorded $1.1 million and $1.0 million of lease expense classified within cost of products sold for the fiscal years ended August 31, 2025, and 2024, respectively. During the fiscal year ended August 31, 2025 and 2024, the Company paid cash of $3.0 million and $2.6 million, respectively, related to lease liabilities. Variable lease expense under the Company’s lease agreements was not significant for both the fiscal years ended August 31, 2025 and 2024. As of August 31, 2025, the weighted-average remaining lease term was 6.2 years and the weighted-average discount rate was 5.1% for the Company’s operating leases. As of August 31, 2024, the weighted-average remaining lease term was 5.0 years and the weighted-

average discount rate was 5.0% for the Company’s operating leases. As of August 31, 2025, the Company did not have material additional operating or financing leases that have not yet commenced.

The Company had no significant short-term leases as of August 31, 2025. The Company obtained additional right-of-use assets of $6.0 million in exchange for lease obligations related to renewals of existing leases during fiscal year 2025. Residual value guarantees, restrictions, covenants, sublease income, net gains or losses from sale and leaseback transactions, and transactions with related parties associated with leases were also not significant.