LEASES

6 Months Ended

Mar. 31, 2024

9. 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 March 31, 2024, the weighted-average remaining lease term for the Company’s operating leases was 4.6 years and the weighted-average discount rate was 3.4%.

As of March 31, 2024, the Company had operating ROU assets of $3.3 million. As of March 31, 2024, total operating lease liabilities of $3.8 million were comprised of current lease liabilities of $1.2 million and non-current lease liabilities of $2.6 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 $0.4 million and $0.5 million of operating lease costs in the three months ended March 31, 2024 and 2023, respectively. The Company recognized $0.9 million and $1.1 million of operating lease costs in the six months ended March 31, 2024 and 2023, respectively. 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 $1.1 million in operating cash flows for operating leases in the six months ended March 31, 2024.

Maturities of operating lease liabilities as of March 31, 2024 were as follows (amounts in thousands):


	Operating leases(1)
2024 - remaining	$	913
2025	727
2026	716
2027	629
2028	422
2029 and thereafter	586

Total lease payments	3,993
Less: amount representing interest	(235)
Present value of future lease payments	$	3,758

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