With the adoption of the new leasing standard, the Company has recorded a right-of-use asset and corresponding lease liability, by calculating the present value of future lease payments, discounted at 3.50% (weighted average rate for operating leases), the Company’s incremental borrowing rate, over the expected term.

Supplemental balance sheet information related to operating leases and finance leases was as follows:

During the nine months ended June 30, 2025 and 2024, the Company incurred total operating lease expenses of $4,254 and $5,830, respectively.

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2025: