XML 33 R18.htm IDEA: XBRL DOCUMENT v3.24.2.u1
LEASES
 9 Months Ended
Jun. 30, 2024
Leases [Abstract]  
LEASES
11.    LEASES

The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The Company recognizes lease expense for the leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.

The Company has various operating and finance leases for facilities and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Facilities leases range in duration from one to 21 years, with either renewal options for additional terms as the initial lease term expires, or purchase options. Facilities leases are considered as either operating or financing leases.

Equipment leases provide for office equipment, laboratory equipment or services the Company uses to conduct its operations. Equipment leases range in duration from 21 to 84 months, with either subsequent annual renewals, additional terms as the initial lease term expires, or purchase options.

ROU lease assets and operating lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:
June 30, 2024September 30, 2023
Operating ROU assets, net$45,216 $38,866 
Current portion of operating lease liabilities11,439 10,282 
Long-term operating lease liabilities35,899 29,614 
Total operating lease liabilities$47,338 $39,896 
During the three and nine months ended June 30, 2024, the Company had operating lease amortization of $2,191 and $6,546, respectively. During the three and nine months ended June 30, 2023, the Company had operating lease amortization of $2,067 and $6,469, respectively.
Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three and nine months ended June 30, 2024 and 2023 were:
Three Months Ended
June 30,		Nine Months Ended
June 30,
2024202320242023
Operating lease costs: 
Fixed operating lease costs$3,448 $2,800 $10,042 $8,714 
Short-term lease costs— 41 — 103 
Lease income(753)(794)(2,311)(2,278)
Total operating lease cost$2,695 $2,047 $7,731 $6,539 

The Company serves as lessor to a lessee in six facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The gross rent receivables and underlying lease liabilities are presented gross in the Company’s condensed consolidated balance sheets.
Supplemental cash flow information related to leases was as follows:
Nine Months Ended
June 30,
20242023
Cash flows included in the measurement of lease liabilities: 
Operating cash flows from operating leases$8,906 $8,397 
Non-cash lease activity: 
ROU assets obtained in exchange for new operating lease liabilities$12,858 $15,938 

The weighted average remaining lease term and discount rate for the Company’s operating leases as of June 30, 2024 and 2023 were:
June 30, 2024June 30, 2023
Weighted-average remaining lease term (in years)
Operating lease8.836.26
Weighted-average discount rate (in percentages) 
Operating lease11.92 %7.98 %
Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of June 30, 2024, maturities of operating lease liabilities for each of the following five fiscal years and a total thereafter were as follows:
Operating Leases
2024 (remainder of fiscal year)$3,147 
202510,159 
202610,340 
20278,375 
20286,859 
Thereafter47,846 
Total minimum future lease payments86,726 
Less interest(39,388)
Total lease liability47,338 
LEASES
11.    LEASES

The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The Company recognizes lease expense for the leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.

The Company has various operating and finance leases for facilities and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Facilities leases range in duration from one to 21 years, with either renewal options for additional terms as the initial lease term expires, or purchase options. Facilities leases are considered as either operating or financing leases.

Equipment leases provide for office equipment, laboratory equipment or services the Company uses to conduct its operations. Equipment leases range in duration from 21 to 84 months, with either subsequent annual renewals, additional terms as the initial lease term expires, or purchase options.

ROU lease assets and operating lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:
June 30, 2024September 30, 2023
Operating ROU assets, net$45,216 $38,866 
Current portion of operating lease liabilities11,439 10,282 
Long-term operating lease liabilities35,899 29,614 
Total operating lease liabilities$47,338 $39,896 
During the three and nine months ended June 30, 2024, the Company had operating lease amortization of $2,191 and $6,546, respectively. During the three and nine months ended June 30, 2023, the Company had operating lease amortization of $2,067 and $6,469, respectively.
Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three and nine months ended June 30, 2024 and 2023 were:
Three Months Ended
June 30,		Nine Months Ended
June 30,
2024202320242023
Operating lease costs: 
Fixed operating lease costs$3,448 $2,800 $10,042 $8,714 
Short-term lease costs— 41 — 103 
Lease income(753)(794)(2,311)(2,278)
Total operating lease cost$2,695 $2,047 $7,731 $6,539 

The Company serves as lessor to a lessee in six facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The gross rent receivables and underlying lease liabilities are presented gross in the Company’s condensed consolidated balance sheets.
Supplemental cash flow information related to leases was as follows:
Nine Months Ended
June 30,
20242023
Cash flows included in the measurement of lease liabilities: 
Operating cash flows from operating leases$8,906 $8,397 
Non-cash lease activity: 
ROU assets obtained in exchange for new operating lease liabilities$12,858 $15,938 

The weighted average remaining lease term and discount rate for the Company’s operating leases as of June 30, 2024 and 2023 were:
June 30, 2024June 30, 2023
Weighted-average remaining lease term (in years)
Operating lease8.836.26
Weighted-average discount rate (in percentages) 
Operating lease11.92 %7.98 %
Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of June 30, 2024, maturities of operating lease liabilities for each of the following five fiscal years and a total thereafter were as follows:
Operating Leases
2024 (remainder of fiscal year)$3,147 
202510,159 
202610,340 
20278,375 
20286,859 
Thereafter47,846 
Total minimum future lease payments86,726 
Less interest(39,388)
Total lease liability47,338