LEASES

3 Months Ended

Dec. 31, 2023

9. LEASES

Leases

The Company leases office and research and development facility leases 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 December 31, 2023, the weighted-average remaining lease term for the Company’s operating leases was 4.4 years and the weighted-average discount rate was 3.5%.

As of December 31, 2023, the Company had operating ROU assets of $3.8 million. As of December 31, 2023, total operating lease liabilities of $4.4 million were comprised of current lease liabilities of $1.6 million and non-current lease liabilities of $2.8 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 $0.5 million of operating lease costs in each of the three months ended December 31, 2023 and 2022. 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.

The Company paid $0.6 million in operating cash flows for operating leases in the three months ended December 31, 2023.

Maturities of operating lease liabilities as of December 31, 2023 were as follows (amounts in thousands):


	Operating leases
2024 - remaining	$	1,416
2025	743
2026	732
2027	644
2028	431
2029 and thereafter	600

Total lease payments	4,566
Less: amount representing interest	(205)
Present value of future lease payments	$	4,361