Leases

9 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

6. Leases

The Company has entered into various operating lease agreements for certain of its offices, manufacturing facilities and equipment, and finance lease agreements for certain equipment. These leases have original lease periods expiring between fiscal years 2023 and 2027. Most leases include one or more options to renew, and the exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expenses are as follows:

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2023		2022		2023		2022		Statement of Operations Classification
	(In thousands)
Lease cost:
Operating lease cost	$	360	$	316	$	1,076	$	942	Operating expenses
Short-term lease cost		27		65		71		130	Operating expenses
Finance lease cost:
Amortization of leased assets		14		18		51		55	Cost of sales
Interest on lease liabilities		2		3		7		11	Other (expense), net
Total net lease cost	$	403	$	402	$	1,205	$	1,138

Supplemental balance sheet information related to leases is as follows:

	March 31,		June 30,		Balance Sheet Classification
	2023		2022
	(In thousands)
Assets:
Operating lease assets	$	2,367	$	3,271	Operating lease right-of-use asset
Finance lease assets		174		256	Property and equipment, net
Total leased assets	$	2,541	$	3,527
Liabilities:
Current:
Operating leases	$	1,252	$	1,227	Other current liabilities
Finance leases		91		96	Current portion of debt
Non-current
Operating leases		1,154		2,090	Other non-current liabilities
Finance leases		15		84	Debt, net of current portion
Total lease liabilities	$	2,512	$	3,497

Remaining lease term and discount rate used are as follows:

	March 31,			June 30,
	2023			2022
Weighted-Average Remaining Lease Term (years)
Operating lease assets		1.94			2.63
Finance lease assets		1.12			1.73
Weighted-Average Discount Rate
Operating lease assets		7.68	%		7.48	%
Finance lease assets		6.54	%		6.43	%

Supplemental cash flow information related to lease is as follows:

	Nine Months Ended
	March 31,
	2023		2022
	(In thousands)
Cash flow classification of lease payments:
Operating cash flows - operating leases	$	1,076	$	942
Operating cash flows - finance leases	$	7	$	12
Financing cash flows - finance leases	$	73	$	76

As of March 31, 2023, the maturities of the Company’s future minimum lease payments were as follows:

	Operating		Finance
	(In thousands)
2023 (remaining 3 months)	$	360	$	23
2024		1,379		87
2025		749		—
2026		90		—
2027		46		—
Total lease payments		2,624		110
Less: Imputed interest		(218)		(4)
Lease liabilities	$	2,406	$	106