XML 29 R16.htm IDEA: XBRL DOCUMENT
v3.25.2

LEASES | 9 Months Ended
--- | ---
Jun. 30, 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:
| June 30, 2025 |  | September 30, 2024
Operating ROU assets, net | $ | 44,930 |  |  | $ | 49,165 |
Current portion of operating lease liabilities | 8,845 |  |  | 11,774 |
Long-term operating lease liabilities | 40,085 |  |  | 40,010 |
Total operating lease liabilities | $ | 48,930 |  |  | $ | 51,784 |
Finance ROU assets, net | $ | 2,734 |  |  | $ | 652 |
Current portion of finance lease liabilities | $ | 426 |  |  | 211 |
Long-term finance lease liabilities | 2,316 |  |  | 433 |
Total finance lease liabilities | $ | 2,742 |  |  | $ | 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 nine months ended June 30, 2025 and 2024 were:
| Three Months Ended June 30, |  | Nine Months Ended June 30, |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |
Fixed operating lease costs | $ | 3,355 |  |  | $ | 3,448 |  |  | $ | 10,197 |  |  | $ | 10,042 |  |  |  |
Lease (income) | (656) |  |  | (753) |  |  | (1,888) |  |  | (2,311) |  |  |  |
Financing lease costs: |  |  |  |  |  |  |  |  |  |
Amortization of ROU asset expense | $ | 113 |  |  | $ | 22 |  |  | $ | 262 |  |  | $ | 58 |  |  |  |
Interest on finance lease liability | 87 |  |  | 6 |  |  | 219 |  |  | 15 |  |  |  |
Total operating lease cost | $ | 2,899 |  |  | $ | 2,723 |  |  | $ | 8,790 |  |  | $ | 7,804 |  |  |  |
The Company serves as lessor to a lessee in nine 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:
| Nine Months Ended June 30,
| 2025 |  | 2024
Cash flows included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 8,277 |  |  | $ | 8,906 |
Operating cash flows from finance leases | 218 |  |  | 68 |
Financing cash flows from finance leases | 235 |  |  | 15 |
Non-cash lease activity: |  |  |
ROU assets obtained in exchange for new operating lease liabilities | $ | 3,205 |  |  | $ | 12,858 |
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 June 30, 2025 and 2024 were:
| June 30, 2025 |  | June 30, 2024
Weighted-average remaining lease term (in years) |  |  |
Operating lease | 9.36 |  | 8.83
Finance lease | 6.10 |  | 2.10
Weighted-average discount rate (in percentages) |  |  |
Operating lease | 12.58 | % |  | 11.92 | %
Finance lease | 12.66 | % |  | 12.77 | %
Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute. As of June 30, 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) | $ | 3,197 |  |  | $ | 186 |
2026 | 11,551 |  |  | 740 |
2027 | 9,801 |  |  | 712 |
2028 | 8,615 |  |  | 683 |
2029 | 7,862 |  |  | 639 |
Thereafter | 48,323 |  |  | 995 |
Total minimum future lease payments | 89,349 |  |  | 3,955 |
Less interest | (40,419) |  |  | (1,213) |
Total lease liability | 48,930 |  |  | 2,742 |
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:
| June 30, 2025 |  | September 30, 2024
Operating ROU assets, net | $ | 44,930 |  |  | $ | 49,165 |
Current portion of operating lease liabilities | 8,845 |  |  | 11,774 |
Long-term operating lease liabilities | 40,085 |  |  | 40,010 |
Total operating lease liabilities | $ | 48,930 |  |  | $ | 51,784 |
Finance ROU assets, net | $ | 2,734 |  |  | $ | 652 |
Current portion of finance lease liabilities | $ | 426 |  |  | 211 |
Long-term finance lease liabilities | 2,316 |  |  | 433 |
Total finance lease liabilities | $ | 2,742 |  |  | $ | 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 nine months ended June 30, 2025 and 2024 were:
| Three Months Ended June 30, |  | Nine Months Ended June 30, |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |
Fixed operating lease costs | $ | 3,355 |  |  | $ | 3,448 |  |  | $ | 10,197 |  |  | $ | 10,042 |  |  |  |
Lease (income) | (656) |  |  | (753) |  |  | (1,888) |  |  | (2,311) |  |  |  |
Financing lease costs: |  |  |  |  |  |  |  |  |  |
Amortization of ROU asset expense | $ | 113 |  |  | $ | 22 |  |  | $ | 262 |  |  | $ | 58 |  |  |  |
Interest on finance lease liability | 87 |  |  | 6 |  |  | 219 |  |  | 15 |  |  |  |
Total operating lease cost | $ | 2,899 |  |  | $ | 2,723 |  |  | $ | 8,790 |  |  | $ | 7,804 |  |  |  |
The Company serves as lessor to a lessee in nine 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:
| Nine Months Ended June 30,
| 2025 |  | 2024
Cash flows included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 8,277 |  |  | $ | 8,906 |
Operating cash flows from finance leases | 218 |  |  | 68 |
Financing cash flows from finance leases | 235 |  |  | 15 |
Non-cash lease activity: |  |  |
ROU assets obtained in exchange for new operating lease liabilities | $ | 3,205 |  |  | $ | 12,858 |
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 June 30, 2025 and 2024 were:
| June 30, 2025 |  | June 30, 2024
Weighted-average remaining lease term (in years) |  |  |
Operating lease | 9.36 |  | 8.83
Finance lease | 6.10 |  | 2.10
Weighted-average discount rate (in percentages) |  |  |
Operating lease | 12.58 | % |  | 11.92 | %
Finance lease | 12.66 | % |  | 12.77 | %
Lease duration was determined utilizing renewal options that the Company is reasonably certain to execute. As of June 30, 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) | $ | 3,197 |  |  | $ | 186 |
2026 | 11,551 |  |  | 740 |
2027 | 9,801 |  |  | 712 |
2028 | 8,615 |  |  | 683 |
2029 | 7,862 |  |  | 639 |
Thereafter | 48,323 |  |  | 995 |
Total minimum future lease payments | 89,349 |  |  | 3,955 |
Less interest | (40,419) |  |  | (1,213) |
Total lease liability | 48,930 |  |  | 2,742 |

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

X
- 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 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
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