Leases

12 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

8. Leases

The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of September 30, 2023 and 2022, in thousands:

	September 30,
	2023		2022
Assets
Right-of-use assets - operating	$	11,217	$	11,258
Right-of-use assets - finance		123		149
Total right-of-use assets	$	11,340	$	11,407
Liabilities
Current
Operating lease liabilities	$	2,623	$	2,101
Finance lease liabilities		64		71
Total current portion of long-term lease liabilities		2,687		2,172
Long-term
Operating lease liabilities		8,894		9,395
Finance lease liabilities		50		76
Total long-term lease liabilities		8,944		9,471
Total lease liabilities	$	11,631	$	11,643

The following table provides information about the financial statement classification of our lease expenses reported in the Consolidated Statements of Operations for the years ended September 30, 2023, 2022 and 2021, in thousands:

		Years Ended September 30,
Lease cost	Classification	2023		2022		2021
Operating lease cost	Cost of sales	$	2,318	$	822	$	536
Operating lease cost	Selling, general and administrative expenses		781		359		256
Operating lease cost	Research, development and engineering		13		14		—
Finance lease cost	Cost of sales		4		4		5
Finance lease cost	Selling, general and administrative expenses		76		71		17
Short-term lease cost	Cost of sales		25		—		191
Total lease cost		$	3,217	$	1,270	$	1,005

Future minimum lease payments under non-cancelable leases as of September 30, 2023 are as follows, in thousands:

Years Ending September 30,	Operating Leases		Finance Leases		Total
2024	$	3,131	$	68	$	3,199
2025		2,040		20		2,060
2026		1,707		20		1,727
2027		1,100		12		1,112
2028		1,108		2		1,110
Thereafter		5,160		—		5,160
Total lease payments		14,246		122		14,368
Less: Interest		2,729		8		2,737
Present value of lease liabilities	$	11,517	$	114	$	11,631

Operating lease payments include $2.3 million related to options to extend lease terms that are reasonably certain of being exercised. During 2023, we reassessed the options to extend the term of the lease on our manufacturing facility in Carlisle, Pennsylvania, and determined it was not reasonably certain that Amtech would exercise those options. As a result, we reduced our ROU Asset and the related ROU Operating Lease liability by $2.7 million.

The following table provides information about the remaining lease terms and discount rates applied as of September 30, 2023 and 2022:

	September 30,
	2023			2022
Weighted average remaining lease term
Operating leases	7.31 years			12.65 years
Finance leases	2.54 years			2.45 years
Weighted average discount rate
Operating leases		5.50	%		4.17	%
Finance leases		4.91	%		4.17	%

As of September 30, 2023, we have entered into a lease that has not yet commenced. We expect to record $7.1 million of ROU asset and lease liability upon the commencement of this new lease in the third quarter of fiscal 2024.