LeasesThe components of lease expense were as follows: | | | | | | | | | | | |
| Years Ended September 30, |
| 2025 | | 2024 |
| Lease expense | | | |
| Finance lease expense: | | | |
| Amortization of right-of use assets on finance leases | $ | 48 | | | $ | 7 | |
| Interest on lease liabilities | 6 | | | — | |
| Operating lease expense | 1,664 | | | 1,639 | |
| | | |
| Variable lease cost | 57 | | 78 |
| | | |
| Total lease expense | $ | 1,775 | | | $ | 1,724 | |
The following table presents the impact of leasing on the consolidated balance sheet at September 30:
| | | | | | | | | | | | | | | | | |
| Classification to the consolidated balance sheets | | 2025 | | 2024 |
| Assets: | | | | | |
| Finance lease assets | Property, plant and equipment, net | | $ | 95 | | | $ | 4 | |
| Operating lease assets | Operating lease right-of-use assets, net | | 12,543 | | | 13,326 | |
| Total lease assets | | | $ | 12,638 | | | $ | 13,330 | |
| | | | | |
| Current liabilities: | | | | | |
| Finance lease liabilities | Current maturities of long-term debt | | $ | 46 | | | $ | — | |
| Operating lease liabilities | Short-term operating lease liabilities | | 959 | | | 879 | |
| Non-current liabilities: | | | | | |
| Finance lease liabilities | Long-term finance lease, net of short-term | | 51 | | | — | |
| Operating lease liabilities | Long-term operating lease liabilities, net of short-term | | 12,230 | | | 13,035 | |
| Total lease liabilities | | | $ | 13,286 | | | $ | 13,914 | |
Supplemental cash flow and other information related to leases were as follows: | | | | | | | | | | | |
| September 30, 2025 | | September 30, 2024 |
| Other Information | | | |
| | | |
| Cash paid for amounts included in measurement of liabilities: | | | |
| Operating cash flows from operating leases | $ | 1,664 | | | $ | 1,639 | |
| Operating cash flows from finance leases | 5 | | — | |
| Financing cash flows from finance leases | 42 | | | — | |
| Right-of-use assets obtained in exchange for new lease liabilities: | | | |
| Finance leases | $ | 139 | | | — | |
| Operating leases | 204 | | | — | |
| | | | | | | | | | | |
| September 30, 2025 | | September 30, 2024 |
| Weighted-average remaining lease term (years): | | | |
| Finance leases | 2.1 | | 0.0 |
| Operating leases | 10.8 | | 11.7 |
| Weighted-average discount rate: | | | |
| Finance leases | 5.17 | % | | — | % |
| Operating leases | 5.95 | % | | 5.93 | % |
Future minimum lease payments under non-cancellable leases as of September 30, 2025 were as follows: | | | | | | | |
| Year ending September 30, | | | Operating Leases |
| 2026 | | | $ | 1,690 | |
| 2027 | | | 1,711 | |
| 2028 | | | 1,592 | |
| 2029 | | | 1,534 | |
| 2030 | | | 1,538 | |
| Thereafter | | | 9,739 | |
| Total lease payments | | | $ | 17,804 | |
| Less: Imputed interest | | | (4,615) | |
| Present value of lease liabilities | | | $ | 13,189 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.