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):


	March 31, 2024			June 30, 2023
Financing receivables	$	4,193		$	5,854
Allowance for credit losses		(798	)		(798	)
Total, net	$	3,395		$	5,056
Reported as:
Current	$	1,496		$	2,016
Non-current		1,899			3,040
Total, net	$	3,395		$	5,056

Inventories consisted of the following (in thousands):


	March 31, 2024		June 30, 2023
Raw materials	$	63,193	$	62,945
Work-in-process		16,619		17,469
Finished goods		79,754		64,736
Inventories	$	159,566	$	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):


	March 31, 2024		June 30, 2023
Value added tax receivables	$	3,766	$	12,023
Prepaid commissions		5,637		5,866
Capitalized contract costs		1,834		1,782
Income tax receivable		1,148		495
Other prepaid assets		4,773		5,763
Other current assets		1,885		1,683
Total prepaid and other current assets	$	19,043	$	27,612

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


	March 31, 2024			June 30, 2023
Machinery and equipment	$	45,286		$	44,779
Leasehold improvements		31,372			26,641
Computer and office equipment		6,321			7,798
Software		11,269			5,191
Furniture and fixtures		1,641			1,581
Construction in progress		2,330			13,499
		98,219			99,489
Less: Accumulated depreciation		(72,832	)		(78,563	)
Property and equipment, net	$	25,387		$	20,926

At March 31, 2024, 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 $1.6 million and $4.3 million during the three and nine months ended March 31, 2024, respectively, and $1.1 million and $3.3 million during the three and nine months ended March 31, 2023, respectively.

Other assets consisted of the following (in thousands):


	March 31, 2024		June 30, 2023
Capitalized contract costs	$	11,718	$	9,244
Long-term accounts receivable		3,103		4,734
Capitalized software costs to be sold		4,011		2,853
Deferred tax asset		833		860
Other long-term assets		2,070		2,416
Total other assets	$	21,735	$	20,107

Capitalized software costs to be sold were $4.0 million and $2.9 million as of March 31, 2024 and June 30, 2023, respectively. There was no amortization expense or amounts written down to net realizable value for the capitalized software costs to be sold during the three and nine months ended March 31, 2024, and June 30, 2023.

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


	March 31, 2024		June 30, 2023
Value added tax liabilities	$	4,609	$	12,709
Commissions due to third parties		5,090		10,499
Refunds due to customers		6,838		3,364
Accrued consulting		940		2,599
Accrued royalties		2,366		2,398
Interest payable		1,436		453
Income tax payable		1,910		900
Other liabilities		7,514		5,349
Total other accrued liabilities	$	30,703	$	38,271

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):


	March 31, 2024			June 30, 2023
Cumulative foreign currency translation adjustment	$	(4,662	)	$	(2,332	)
Defined benefit pension obligation		2,754			2,754
Accumulated other comprehensive income (loss)	$	(1,908	)	$	422

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


	Three Months Ended March 31,						Nine Months Ended March 31,
	2024			2023			2024			2023
Interest expense	$	(2,884	)	$	(2,724	)	$	(8,728	)	$	(7,630	)
Foreign currency exchange gain (loss)		861			(244	)		(1,373	)		(528	)
Other, net		(337	)		(254	)		(292	)		(453	)
Total other expense, net	$	(2,360	)	$	(3,222	)	$	(10,393	)	$	(8,611	)