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 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, 2023			June 30, 2023
Financing receivables	$	4,717		$	5,854
Allowance for credit losses		(798	)		(798	)
Total, net	$	3,919		$	5,056
Reported as:
Current	$	1,604		$	2,016
Non-current		2,315			3,040
Total, net	$	3,919		$	5,056

Inventories consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Raw materials	$	63,699	$	62,945
Work-in-process		16,387		17,469
Finished goods		75,142		64,736
Inventories	$	155,228	$	145,150

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

Prepaid and other current assets consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Value added tax receivables	$	7,321	$	11,718
Prepaid commissions		5,906		5,866
Capitalized contract costs		1,800		1,782
Other prepaid assets		6,495		5,763
Other current assets		3,498		2,483
Total prepaid and other current assets	$	25,020	$	27,612

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


	December 31, 2023			June 30, 2023
Furniture and fixtures	$	1,848		$	1,581
Computer and office equipment		7,781			7,798
Software		13,238			5,191
Leasehold improvements		35,667			26,641
Machinery and equipment		44,649			44,779
Construction in progress		3,426			13,499
		106,609			99,489
Less: Accumulated depreciation		(80,690	)		(78,563	)
Property and equipment, net	$	25,919		$	20,926

At December 31, 2023, software includes $8.1 million in capitalized costs for the completed transition of the Company's new enterprise resource planning system in August 2023. The Company will depreciate the enterprise resource planning system over five years. Depreciation expense related to property and equipment was $1.5 million and $2.7 million during the three and six months ended December 31, 2023, respectively, and $1.1 million and $2.2 million during the three and six months ended December 31, 2022, respectively.

Other assets consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Capitalized contract costs	$	10,736	$	9,244
Long-term accounts receivable		4,564		4,734
Capitalized software costs to be sold		3,624		2,853


Other long-term assets		3,569		3,276
Total other assets	$	22,493	$	20,107

Other accrued liabilities consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Value added tax liabilities	$	8,540	$	12,368
Commissions due to third parties		8,777		10,499
Refunds due to customers		4,041		3,364
Accrued consulting		1,246		2,599
Accrued royalties		2,518		2,398
Income tax payable		1,869		900
Other liabilities		9,262		6,143
Total other accrued liabilities	$	36,253	$	38,271

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


	December 31, 2023			June 30, 2023
Cumulative foreign currency translation adjustment	$	(1,697	)	$	(2,332	)
Defined benefit pension obligation		2,754			2,754
Accumulated other comprehensive income	$	1,057		$	422

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


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Interest expense	$	(2,922	)	$	(2,644	)	$	(5,844	)	$	(4,906	)
Foreign currency exchange loss		(1,278	)		(33	)		(2,234	)		(284	)
Other, net		(152	)		(154	)		45			(199	)
Total other expense, net	$	(4,352	)	$	(2,831	)	$	(8,033	)	$	(5,389	)