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LEASES

6 Months Ended

Mar. 31, 2025

Leases [Abstract]

LEASES

.    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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations.

ROU lease assets and lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:

			March 31, 2025						September 30, 2024
Operating ROU assets, net			$	46,761					$	49,165
Current portion of operating lease liabilities			8,988						11,774
Long-term operating lease liabilities			40,225						40,010
Total operating lease liabilities			$	49,213					$	51,784
Finance ROU assets, net			$	2,846					$	652
Current portion of finance lease liabilities			$	414					211
Long-term finance lease liabilities			2,427						433
Total finance lease liabilities			$	2,841					$	644

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 six months ended March 31, 2025 and 2024 were:

			Three Months Ended March 31,												Six Months Ended March 31,
			2025						2024						2025						2024
Operating lease costs:
Fixed operating lease costs			$	3,403					$	3,491					$	6,842					$	6,594
Lease income			(532)						(794)						(1,232)						(1,558)
Financing lease costs:
Amortization of ROU asset expense			$	123					$	28					$	149					$	36
Interest on finance lease liability			108						8						132						9
Total operating lease cost			$	3,102					$	2,733					$	5,891					$	5,081

The Company serves as lessor to a lessee in eight facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The 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:

			Six Months Ended March 31,
			2025						2024
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	6,461					$	5,762
Operating cash flows from finance leases			131						42
Financing cash flows from finance leases			136						9
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities			$	3,194					$	12,441
ROU assets obtained in exchange for new finance lease liabilities			2,294						191

The weighted average remaining lease term and discount rate for the Company’s operating leases as of March 31, 2025 and 2024 were:

			March 31, 2025						March 31, 2024
Weighted-average remaining lease term (in years)
Operating lease			9.09						8.91
Finance lease			6.30						2.63
Weighted-average discount rate (in percentages)
Operating lease			12.53		%				11.84		%
Finance lease			12.66		%				12.57		%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of March 31, 2025, maturities of operating and finance lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

			Operating Leases						Finance Leases
2025 (remainder of fiscal year)			$	4,822					$	372
2026			11,739						740
2027			9,804						712
2028			8,619						683
2029			7,864						639
Thereafter			48,323						995
Total minimum future lease payments			91,171						4,141
Less interest			(41,958)						(1,300)
Total lease liability			49,213						2,841

LEASES

.    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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations.

ROU lease assets and lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:

			March 31, 2025						September 30, 2024
Operating ROU assets, net			$	46,761					$	49,165
Current portion of operating lease liabilities			8,988						11,774
Long-term operating lease liabilities			40,225						40,010
Total operating lease liabilities			$	49,213					$	51,784
Finance ROU assets, net			$	2,846					$	652
Current portion of finance lease liabilities			$	414					211
Long-term finance lease liabilities			2,427						433
Total finance lease liabilities			$	2,841					$	644

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 six months ended March 31, 2025 and 2024 were:

			Three Months Ended March 31,												Six Months Ended March 31,
			2025						2024						2025						2024
Operating lease costs:
Fixed operating lease costs			$	3,403					$	3,491					$	6,842					$	6,594
Lease income			(532)						(794)						(1,232)						(1,558)
Financing lease costs:
Amortization of ROU asset expense			$	123					$	28					$	149					$	36
Interest on finance lease liability			108						8						132						9
Total operating lease cost			$	3,102					$	2,733					$	5,891					$	5,081

The Company serves as lessor to a lessee in eight facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The 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:

			Six Months Ended March 31,
			2025						2024
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	6,461					$	5,762
Operating cash flows from finance leases			131						42
Financing cash flows from finance leases			136						9
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities			$	3,194					$	12,441
ROU assets obtained in exchange for new finance lease liabilities			2,294						191

The weighted average remaining lease term and discount rate for the Company’s operating leases as of March 31, 2025 and 2024 were:

			March 31, 2025						March 31, 2024
Weighted-average remaining lease term (in years)
Operating lease			9.09						8.91
Finance lease			6.30						2.63
Weighted-average discount rate (in percentages)
Operating lease			12.53		%				11.84		%
Finance lease			12.66		%				12.57		%

Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute.

As of March 31, 2025, maturities of operating and finance lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

			Operating Leases						Finance Leases
2025 (remainder of fiscal year)			$	4,822					$	372
2026			11,739						740
2027			9,804						712
2028			8,619						683
2029			7,864						639
Thereafter			48,323						995
Total minimum future lease payments			91,171						4,141
Less interest			(41,958)						(1,300)
Total lease liability			49,213						2,841

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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

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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

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