A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset on the Company’s balance sheets. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, totaled $3.0 million and $2.8 million as of December 31, 2022, and June 30, 2022, respectively, and are included in other assets on the unaudited condensed consolidated balance sheets. The Company evaluates the credit quality of a customer at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new orders and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the contract term and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The Company classifies accounts as high risk when it considers the financing

receivable to be impaired or when management believes there is a significant near‑term risk of non‑payment. The Company performs an assessment each quarter of the allowance for credit losses related to its financing receivables.

A summary of the Company’s financing receivables is presented as follows (in thousands):


	December 31, 2022			June 30, 2022
Financing receivables	$	6,165		$	6,137
Allowance for credit losses		(943	)		(943	)
Total, net	$	5,222		$	5,194
Reported as:
Current	$	2,245		$	2,435
Non-current		2,977			2,759
Total, net	$	5,222		$	5,194

The Company did not have any additions to the allowance for credit losses during the three and six months ended December 31, 2022 and 2021.

Inventories consisted of the following (in thousands):


	December 31, 2022		June 30, 2022
Raw materials	$	65,463	$	61,871
Work-in-process		16,427		16,367
Finished goods		73,775		64,016
Inventories	$	155,665	$	142,254

The Company's inventories on the unaudited condensed consolidated balance sheets are net of reserves.

Property and equipment, net, consisted of the following (in thousands):


	December 31, 2022			June 30, 2022
Furniture and fixtures	$	1,666		$	1,766
Computer and office equipment		8,454			8,605
Software		5,260			5,344
Leasehold improvements		26,777			26,659
Machinery and equipment		47,016			46,522
Construction in progress		2,768			2,999
		91,941			91,895
Less: Accumulated depreciation		(80,786	)		(79,210	)
Property and equipment, net	$	11,155		$	12,685

Depreciation expense related to property and equipment was $1.1 million and $2.2 million during the three and six months ended December 31, 2022, respectively, and $1.4 million and $2.8 million during the three and six months ended December 31, 2021, respectively.

The changes in accumulated other comprehensive income (loss) are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the U.S. Dollar as their functional currency since the majority of their economic activities are primarily denominated in their applicable local currency. Accordingly, all assets and liabilities related to these operations are translated to the U.S. Dollar at the current exchange rates at the end of each period. Revenues and expenses are translated at average exchange rates in effect during the period.

The components of accumulated other comprehensive income (loss) in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands):


	December 31, 2022			June 30, 2022
Cumulative foreign currency translation adjustment	$	(2,406	)	$	(1,541	)
Defined benefit pension obligation		3,947			3,947
Accumulated other comprehensive income	$	1,541		$	2,406

Other expense, net, consisted of the following (in thousands):


	Three Months Ended December 31,						Six Months Ended December 31,
	2022			2021			2022			2021
Interest expense	$	(2,644	)	$	(2,076	)	$	(4,906	)	$	(4,115	)
Foreign currency transaction loss		(33	)		(633	)		(284	)		(1,402	)
Other expense, net		(154	)		219			(199	)		359
Total other expense, net	$	(2,831	)	$	(2,490	)	$	(5,389	)	$	(5,158	)