Company: NGVC
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001437749-25-037556
Chunk: 95

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 95
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	Operating leases

			18,412

			22,317

			15,274

			Finance leases

			7,419

			(45
			)

			5,724

Additional information related to the Company’s leases as of September 30, 2025 and 2024 was as follows:

			As of September 30,

			2025

			2024

			Weighted-average remaining lease term (in years):

			Operating leases

			9.3

			9.9

			Finance leases

			15.1

			13.6

			Weighted-average discount rate:

			Operating leases

			4.2
			
			%

			4.1

			Finance leases

			5.1
			
			%

			4.8

During the year ended September 30, 2025, the Company early terminated a lease due to a store relocation, and, as a result, the Company wrote off operating lease assets and liabilities of less than $0.1 million each and recorded a gain of less than $0.1 million. During the years ended September 30, 2024 and 2023, the Company paid $0.3 million and $0.2 million in lease termination costs, respectively, to early terminate the leases associated with stores that closed in prior fiscal years, and, as a result, the Company wrote off $0.4 million and $0.1 million in operating lease assets and $0.6 million and $0.2 million in operating lease liabilities and recorded losses of $0.2 million and $0.1 million during the years ended September 30, 2024 and 2023, respectively.

In addition, during the year ended September 30, 2025, the Company purchased a store’s previously leased land and building. This resulted in reductions of $0.2 million and $1.0 million in operating and finance lease liabilities with the offset to their related lease assets, respectively, and the reclassification of less than $(0.1) million and $(0.1) million of operating and finance lease assets, as adjusted by the reduction of their related lease liabilities, respectively, to property and equipment.

74

Future lease payments under non-cancellable leases as of September 30, 2025 were as follows, dollars in thousands:

			Fiscal year 

			Operating