v3.26.1
LEASES
 6 Months Ended
Mar. 31, 2026
Leases [Abstract]  
LEASES .    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 Accounting Standards Codification 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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations.

ROU lease assets and lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:

March 31, 2026September 30, 2025
Operating ROU assets, net$54,663 $46,358 
Current portion of operating lease liabilities6,316 6,896 
Long-term operating lease liabilities53,781 44,344 
Total operating lease liabilities$60,097 $51,240 
Finance ROU assets, net$4,182 $2,900 
Current portion of finance lease liabilities$727 495 
Long-term finance lease liabilities3,520 2,430 
Total finance lease liabilities$4,247 $2,925 

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, 2026 and 2025 were:

Three Months Ended
March 31,		Six Months Ended
March 31,
2026202520262025
Operating lease costs: 
Fixed operating lease costs$3,393 $3,403 $6,736 $6,842 
Lease (income)(767)(532)(1,624)(1,232)
Financing lease costs:
Amortization of ROU asset expense$208 $123 $337 $149 
Interest on finance lease liability129 108 218 132 
Total operating lease cost$2,963 $3,102 $5,667 $5,891 

The Company serves as a lessor to eleven tenants. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The 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,
20262025
Cash flows included in the measurement of lease liabilities: 
Operating cash flows from operating leases$6,129 $6,461 
Operating cash flows from finance leases218 131 
Financing cash flows from finance leases298 136 
Non-cash lease activity: 
ROU assets obtained in exchange for new operating lease liabilities$11,910 $3,194 
ROU assets obtained in exchange for new finance lease liabilities1,619 2,294 

The weighted average remaining lease term and discount rate for the Company’s operating leases as of March 31, 2026 and 2025 were:

March 31, 2026March 31, 2025
Weighted-average remaining lease term (in years)
Operating lease9.199.09
Finance lease5.636.30
Weighted-average discount rate (in percentages) 
Operating lease11.54 %12.53 %
Finance lease11.54 %12.66 %

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

As of March 31, 2026, maturities of operating and finance lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

Operating LeasesFinance Leases
2026 (remainder of fiscal year)$6,482 $583 
202712,012 1,137 
202811,786 1,109 
202911,188 1,047 
20309,662 660 
Thereafter49,362 1,231 
Total minimum future lease payments100,492 5,767 
Less interest(40,395)(1,520)
Total lease liability60,097 4,247 
LEASES .    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 Accounting Standards Codification 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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations.

ROU lease assets and lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:

March 31, 2026September 30, 2025
Operating ROU assets, net$54,663 $46,358 
Current portion of operating lease liabilities6,316 6,896 
Long-term operating lease liabilities53,781 44,344 
Total operating lease liabilities$60,097 $51,240 
Finance ROU assets, net$4,182 $2,900 
Current portion of finance lease liabilities$727 495 
Long-term finance lease liabilities3,520 2,430 
Total finance lease liabilities$4,247 $2,925 

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, 2026 and 2025 were:

Three Months Ended
March 31,		Six Months Ended
March 31,
2026202520262025
Operating lease costs: 
Fixed operating lease costs$3,393 $3,403 $6,736 $6,842 
Lease (income)(767)(532)(1,624)(1,232)
Financing lease costs:
Amortization of ROU asset expense$208 $123 $337 $149 
Interest on finance lease liability129 108 218 132 
Total operating lease cost$2,963 $3,102 $5,667 $5,891 

The Company serves as a lessor to eleven tenants. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The 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,
20262025
Cash flows included in the measurement of lease liabilities: 
Operating cash flows from operating leases$6,129 $6,461 
Operating cash flows from finance leases218 131 
Financing cash flows from finance leases298 136 
Non-cash lease activity: 
ROU assets obtained in exchange for new operating lease liabilities$11,910 $3,194 
ROU assets obtained in exchange for new finance lease liabilities1,619 2,294 

The weighted average remaining lease term and discount rate for the Company’s operating leases as of March 31, 2026 and 2025 were:

March 31, 2026March 31, 2025
Weighted-average remaining lease term (in years)
Operating lease9.199.09
Finance lease5.636.30
Weighted-average discount rate (in percentages) 
Operating lease11.54 %12.53 %
Finance lease11.54 %12.66 %

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

As of March 31, 2026, maturities of operating and finance lease liabilities for each of the following five fiscal years and a total thereafter were as follows:

Operating LeasesFinance Leases
2026 (remainder of fiscal year)$6,482 $583 
202712,012 1,137 
202811,786 1,109 
202911,188 1,047 
20309,662 660 
Thereafter49,362 1,231 
Total minimum future lease payments100,492 5,767 
Less interest(40,395)(1,520)
Total lease liability60,097 4,247