XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.25.2

Note 15 - Leases | 9 Months Ended
--- | ---
Jun. 30, 2025
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | Note 15. Leases The Company leases an approximately 85,000 square foot facility at 7050 Winnetka Avenue North, Brooklyn Park, Minnesota consisting of corporate offices, manufacturing, and warehouse space. The lease term is 13 years and two months, ending on February 29, 2028. At commencement, the lease called for monthly base rental payments of approximately $37,000, increasing annually. The Company indirectly leases an approximately 318,000 square foot manufacturing facility in Tijuana, Mexico that operates as a Maquiladora. The lease term commenced in April 2024 and has a term of seven years, of which five years are mandatory. The lease contains two options to extend the term of the lease for additional periods of five years each. At commencement, the lease called for monthly base rental payments of approximately $169,000, increasing 2% annually. The renewal options have not been included within the lease term because it is not reasonably certain that the Company will exercise either option. The Company leases an approximately 105,000 square foot warehouse and manufacturing facility in Brooklyn Park, Minnesota. The lease term is five years ending on February 28, 2027, with rent payments increasing annually. At commencement, the lease called for monthly base rental payments of approximately $56,000. The lease includes an option to extend the lease for an additional five years. The renewal option has not been included within the lease term because it is not reasonably certain that the Company will exercise the option. Nestor Cables leases an approximately 25,000 square foot manufacturing facility in Oulu, Finland, which is utilized for the operations of Nestor Cables. The original lease term ended on October 31, 2022, but auto renewed and will continue to auto renew indefinitely until terminated with two years written notice. It is not reasonably certain that the Company will exercise the termination option. At lease commencement, the lease called for monthly rental payments of approximately €40,000. Rent is increased each year on January 1st based upon the cost-of-living index published by the Finnish government. Nestor Cables previously leased a facility in Keila, Estonia which was terminated in the first quarter of fiscal 2025, with the operations of the Keila facility being consolidated into the Nestor Cables facility in Tabasalu, Estonia. Nestor Cables leases a manufacturing facility in Tabasalu, Estonia, which was expanded in the first quarter of fiscal 2025 from approximately 49,000 square feet to approximately 115,000 square feet and which is utilized for the operations of Nestor Cables Baltics. The lease term is 10 years ending in November 2034. The lease for the facility calls for monthly rental payments of approximately €63,000. Rent for the portion of the lease pertaining to the original 49,000 square foot facility, which at lease commencement had monthly base rental of €24,000, is increased each year on May 1st based upon the cost-of-living index published by the Estonian government and is capped at 5%. Right-of-use lease assets and lease liabilities are recognized as of the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the three and nine months ended:
Operating lease expense within: |  | Three Months Ended June 30, |  |  | Nine months Ended June 30, |
(in thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Cost of sales |  | $ | 1,192 |  |  | $ | 1,081 |  |  | $ | 3,474 |  |  | $ | 3,193 |
Selling, general and administrative |  |  | 143 |  |  |  | 80 |  |  |  | 376 |  |  |  | 229 |
Total lease expense |  | $ | 1,335 |  |  | $ | 1,161 |  |  | $ | 3,850 |  |  | $ | 3,422 |
Future maturities of lease liabilities were as follows as of June 30, 2025 (in thousands):
FY2025 (Remaining) |  | $ | 1,690 |
FY2026 |  |  | 5,081 |
FY2027 |  |  | 4,099 |
FY2028 |  |  | 3,508 |
FY2029 |  |  | 2,188 |
Thereafter |  |  | 5,450 |
Total lease payments |  |  | 22,016 |
Less: Interest |  |  | (3,562 | )
Present value of lease liabilities |  | $ | 18,454 |
The weighted average term and weighted average discount rate for the Company’s leases as of June 30, 2025, were 5.64 years and 6.38%, respectively, compared to 5.35 years and 6.61%, respectively, as of June 30, 2024. For the three and nine months ended June 30, 2025, the operating cash outflows from the Company’s leases was $1,227,685 and $3,609,176, respectively, compared to $1,058,000 and $3,150,000, respectively, for the three and nine months ended June 30, 2024.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration