LEASES

6 Months Ended

Mar. 31, 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:

	March 31, 2024		September 30, 2023
Operating ROU assets, net	$	46,796	$	38,866
Current portion of operating lease liabilities	11,413		10,282
Long-term operating lease liabilities	37,218		29,614
Total operating lease liabilities	$	48,631	$	39,896

During the three and six months ended March 31, 2024, the Company had operating lease amortization of $2,208 and $4,355, respectively. During the three and six months ended March 31, 2023, the Company had operating lease amortization of $2,466 and $4,401, 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 six months ended March 31, 2024 and 2023 were:

	Three Months Ended March 31,				Six Months Ended March 31,
	2024		2023		2024		2023
Operating lease costs:
Fixed operating lease costs	$	3,491	$	3,322	$	6,594	$	5,914
Short-term lease costs	—		50		—		62
Lease income	(794)		(811)		(1,558)		(1,485)
Total operating lease cost	$	2,697	$	2,561	$	5,036	$	4,491

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:

	Six Months Ended March 31,
	2024		2023
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,762	$	5,491
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	12,441	$	14,080

The weighted average remaining lease term and discount rate for the Company’s operating leases as of March 31, 2024 and 2023 were:

	March 31, 2024		March 31, 2023
Weighted-average remaining lease term (in years)
Operating lease	8.91		5.92
Weighted-average discount rate (in percentages)
Operating lease	11.84	%	7.85	%

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

As of March 31, 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)	$	6,122
2025	9,695
2026	10,340
2027	8,375
2028	6,859
Thereafter	47,843
Total minimum future lease payments	89,234
Less interest	(40,603)
Total lease liability	48,631

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:

	March 31, 2024		September 30, 2023
Operating ROU assets, net	$	46,796	$	38,866
Current portion of operating lease liabilities	11,413		10,282
Long-term operating lease liabilities	37,218		29,614
Total operating lease liabilities	$	48,631	$	39,896

During the three and six months ended March 31, 2024, the Company had operating lease amortization of $2,208 and $4,355, respectively. During the three and six months ended March 31, 2023, the Company had operating lease amortization of $2,466 and $4,401, 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 six months ended March 31, 2024 and 2023 were:

	Three Months Ended March 31,				Six Months Ended March 31,
	2024		2023		2024		2023
Operating lease costs:
Fixed operating lease costs	$	3,491	$	3,322	$	6,594	$	5,914
Short-term lease costs	—		50		—		62
Lease income	(794)		(811)		(1,558)		(1,485)
Total operating lease cost	$	2,697	$	2,561	$	5,036	$	4,491

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:

	Six Months Ended March 31,
	2024		2023
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,762	$	5,491
Non-cash lease activity:
ROU assets obtained in exchange for new operating lease liabilities	$	12,441	$	14,080

The weighted average remaining lease term and discount rate for the Company’s operating leases as of March 31, 2024 and 2023 were:

	March 31, 2024		March 31, 2023
Weighted-average remaining lease term (in years)
Operating lease	8.91		5.92
Weighted-average discount rate (in percentages)
Operating lease	11.84	%	7.85	%

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

As of March 31, 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)	$	6,122
2025	9,695
2026	10,340
2027	8,375
2028	6,859
Thereafter	47,843
Total minimum future lease payments	89,234
Less interest	(40,603)
Total lease liability	48,631