The Company determines if an arrangement is a lease at inception. Assets and obligations related to operating leases are included in operating lease right-of-use (“ROU”) assets; current portion of operating lease liability; and operating lease liability, net of current portion in our consolidated balance sheets. Assets and obligations related to finance leases are included in property, technology and equipment, net; current portion of finance lease liability; and finance lease liability, net of current portion in our consolidated balance sheets.

 

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate based on the information available at commencement date is used in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

 

The Company’s agreements with lease and non-lease components are each accounted for as a single lease component.

 

For leases with an initial term of twelve months or less, the Company elected the exemption from recording ROU assets and lease liabilities for all leases that qualify and records rent expense on a straight-line basis over the lease term.

 

The Company has operating leases for office and warehouse space in certain locations where it conducts business. As of June 30, 2025, the remaining terms of the Company’s operating leases were between 1 and 104 months and certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include the minimum lease payments that the Company is obligated to make under the non-cancelable initial terms of the leases as the renewal terms are at the Company’s option and the Company is not reasonably certain to exercise those renewal options at lease commencement.

 

The components of lease cost for the three- and nine-month periods ended June 30, 2025 and 2024 were as follows (in thousands):

 

 

Rent expense for the nine months ended June 30, 2025 and 2024 was $2,151 and $1,982, respectively.

 

Operating lease ROU assets, current portion of operating lease liabilities and long-term operating lease liabilities reported in the condensed consolidated balance sheets for operating leases as of June 30, 2025 were $7,956, $2,331 and $6,296, respectively.

 

Operating lease ROU assets, current portion of operating lease liabilities and long-term operating lease liabilities reported in the condensed consolidated balance sheets for operating leases as of September 30, 2024 were $8,621, $2,419 and $6,585, respectively.

As of June 30, 2025 and September 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate related to the Company’s operating leases were 4.7 years and 6.08% and 5.3 years and 5.72%, respectively.

 

Future minimum lease payments under non-cancelable operating leases as of June 30, 2025 were as follows (in thousands):

 

2026		$	2,521
2027			2,276
2028			2,234
2029			1,378
2030			517
Thereafter			965
Total undiscounted lease payments			9,891
Less imputed interest			(1,264	)
Total lease obligations		$	8,627