Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
9 Months Ended
Jun. 30, 2026
Leases  
Leases

9. Leases

 

The Company leases space for all its branch offices, which are generally located either in downtown or suburban business centers, and for its corporate headquarters. Branch offices are generally leased over periods ranging from three to five years. The corporate office lease expires in 2026. The Company’s leases generally provide for payment of basic rent plus a share of building real estate taxes, maintenance costs and utilities.

 

Operating lease expenses included in selling, general, and administrative expenses on the unaudited condensed consolidated statements of operations were $383 and $410 for the three-month periods and $1,112 and $1,329 for the nine-month periods ended June 30, 2026 and 2025, respectively.

 

Supplemental cash flow information related to operating leases consisted of the following:

 

 

 

Nine Months Ended

 

 

 

June 30,

 

 

 

2026

 

 

2025

 

Cash paid for operating lease liabilities

 

$ 831

 

 

$ 930

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

1,448

 

 

 

488

 

 

Supplemental balance sheet information related to operating leases consisted of the following:

 

 

 

June 30,

2026

 

 

September 30,

2025

 

Weighted average remaining lease term for operating leases

 

3.3 years

 

 

2.6 years

 

Weighted average discount rate for operating leases

 

 

5.3%

 

 

5.5%

 

The table below reconciles the undiscounted future minimum lease payments under non-cancelable operating lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2026, including certain closed offices are as follows:

 

Remainder of Fiscal 2026

 

$ 302

 

Fiscal 2027

 

 

1,124

 

Fiscal 2028

 

 

878

 

Fiscal 2029

 

 

588

 

Fiscal 2030

 

 

401

 

Thereafter

 

 

592

 

Less: Imputed interest

 

 

(420 )

Present value of operating lease liabilities (a)

 

$ 3,465

 

 

 

(a)

Includes current portion of $1,000 for operating leases.

 

The Company acquires some of its equipment under finance leases including hardware and software used by our IT department to improve security and capacity, and certain furniture for our offices. Terms for these leases generally range from two to six years. The assets obtained under finance leases are included in property and equipment, net, on the unaudited condensed consolidated balance sheets.

 

Finance lease expenses such as amortization of the lease assets and interest expense on the lease liabilities are included on the unaudited condensed consolidated statements of operations in depreciation expense and interest expense, respectively. Supplemental information related to these expenses consisted of the following:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Amortization of finance lease assets

 

$ 21

 

 

$ 23

 

 

$ 63

 

 

$ 68

 

Interest on finance lease liabilities

 

 

1

 

 

 

2

 

 

 

2

 

 

 

6

 

 

Supplemental balance sheet information related to finance leases consisted of the following:

 

 

 

June 30,

2026

 

 

September 30,

2025

 

Net book value of finance leases

 

$ 50

 

 

$ 113

 

Weighted average remaining lease term for finance leases

 

0.4 years

 

 

1.2 years

 

Weighted average discount rate for finance leases

 

 

5.3%

 

 

5.3%

 

The table below reconciles the undiscounted future minimum lease payments under non-cancellable finance lease agreements to the total finance lease liabilities recognized on the unaudited condensed consolidated balance sheets, included in other current liabilities as of June 30, 2026:

 

Remainder of Fiscal 2026

 

$ 18

 

Fiscal 2027

 

 

12

 

Less: Imputed interest

 

 

-

 

Present value of finance lease liabilities

 

$ 30