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Leases | 12 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
LEASES | LEASES All of our leases are operating leases and primarily consist of leases for office space. For any lease with an initial term in excess of twelve months, the related lease assets and lease liabilities are recognized on our consolidated balance sheets as either operating or financing leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. We have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheets. Instead we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We generally use a collateralized incremental borrowing rate based on information available at the commencement date, including the lease term, in determining the present value of future payments. When determining our right-of-use asset, we generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Our leases typically require payment of real estate taxes and common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table shows the supplemental balance sheet information related to our leases (in thousands):
|  | Balance Sheet Location |  | September 30, 2024 |  | September 30, 2023
Assets |  |  |  |  |  |
Operating leases |  | Operating lease right-of-use assets |  | $ | 10,207 |  |  | $ | 12,876 |
Total lease assets |  |  |  | $ | 10,207 |  |  | $ | 12,876 |
Liabilities |  |  |  |  |  |
Operating leases |  | Current portion of operating lease liabilities |  | $ | 2,973 |  |  | $ | 3,352 |
Operating leases |  | Operating lease liabilities |  | 11,228 |  |  | 13,989 |
Total lease liabilities |  |  |  | $ | 14,201 |  |  | $ | 17,341 |
The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands):
| Statement of Operations Location |  |  |  | Year ended September 30, 2024 |  | Year ended September 30, 2023
Operating lease cost | Cost of goods sold and SG&A |  |  |  | $ | 3,531 |  |  | $ | 3,815 |
Variable lease cost | Cost of goods sold and SG&A |  |  |  | 1,263 |  |  | 1,332 |
Short-term lease cost | Cost of goods sold and SG&A |  |  |  | 114 |  |  | 93 |
Total lease cost |  |  |  |  | $ | 4,908 |  |  | $ | 5,240 |
The following table presents supplemental information related to operating leases (in thousands):
|  | Year ended September 30, 2024 |  | Year ended September 30, 2023
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 3,065 |  |  | $ | 2,965 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 440 |  |  | $ | 276 |
8. LEASES (CONTINUED)
|  | September 30, 2024
Weighted average remaining lease term - operating leases |  | 5.9 years
Weighted average discount rate - operating leases |  | 4.80 | %
The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of September 30, 2024 (in thousands):
Fiscal year |  | Amount
2025 |  | $ | 3,791 |
2026 |  | 3,307 |
2027 |  | 2,068 |
2028 |  | 1,897 |
2029 |  | 1,840 |
Thereafter |  | 3,865 |
Total future undiscounted lease payments |  | 16,768 |
Less imputed interest |  | (2,567) |
Total reported lease liability |  | $ | 14,201 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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