Leases

12 Months Ended

Jun. 30, 2025

The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $5.1 million of a machinery lease financing with a vendor. In September 2022, the lease was amended to make a monthly payment of principal and interest as a fixed amount effective in October 2022. Other terms remain the same. The amendment was accounted for as a lease modification and no gain or loss was recognized. The Company does not record leases on the consolidated balance sheet with a term of one year or less.

The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands):


	Year Ended June 30,
	2025		2024
Operating leases:
Fixed rent expense	$	6,497	$	6,268
Variable rent expense	1,098		1,095
Finance lease:
Depreciation of equipment	513		513
Interest	210		277
Short-term leases:
Short-term lease expenses	173		161
Total lease expenses	$	8,491	$	8,314

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):


	June 30,
	2025			2024
Operating Leases:
ROU assets associated with operating leases	$	21,288		$	25,050
Finance Lease:
Property, plant and equipment, gross	$	5,133		$	5,133
Accumulated depreciation	(1,684)			(1,171)
Property, plant and equipment, net	$	3,449		$	3,962

Weighted average remaining lease term (in years)
Operating leases	5.00			5.54
Finance lease	2.25			3.25

Weighted average discount rate
Operating leases	4.88		%	4.91		%
Finance lease	7.51		%	7.51		%

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):


	Year Ended June 30,
	2025		2024
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,466	$	6,330
Operating cash flows from finance lease	$	210	$	277
Financing cash flows from finance lease	$	935	$	867

Non-cash investing and financing information:
Operating lease right-of-use assets obtained in exchange for lease obligations	$	1,162	$	5,884

Future minimum lease payments are as follows as of June 30, 2025 (in thousands):


	Operating Leases		Finance Leases
2026	$	5,935	$	1,144
2027	5,011		1,144
2028	4,419		191
2029	4,055		—
2030	3,430		—
Thereafter	1,841		—
Total minimum lease payments	24,691		2,479
Less amount representing interest	(2,788)		(198)
Total lease liabilities	$	21,903	$	2,281

Leases

The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands):


	Year Ended June 30,
	2025		2024
Operating leases:
Fixed rent expense	$	6,497	$	6,268
Variable rent expense	1,098		1,095
Finance lease:
Depreciation of equipment	513		513
Interest	210		277
Short-term leases:
Short-term lease expenses	173		161
Total lease expenses	$	8,491	$	8,314

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):


	June 30,
	2025			2024
Operating Leases:
ROU assets associated with operating leases	$	21,288		$	25,050
Finance Lease:
Property, plant and equipment, gross	$	5,133		$	5,133
Accumulated depreciation	(1,684)			(1,171)
Property, plant and equipment, net	$	3,449		$	3,962

Weighted average remaining lease term (in years)
Operating leases	5.00			5.54
Finance lease	2.25			3.25

Weighted average discount rate
Operating leases	4.88		%	4.91		%
Finance lease	7.51		%	7.51		%

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):


	Year Ended June 30,
	2025		2024
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,466	$	6,330
Operating cash flows from finance lease	$	210	$	277
Financing cash flows from finance lease	$	935	$	867

Non-cash investing and financing information:
Operating lease right-of-use assets obtained in exchange for lease obligations	$	1,162	$	5,884

Future minimum lease payments are as follows as of June 30, 2025 (in thousands):


	Operating Leases		Finance Leases
2026	$	5,935	$	1,144
2027	5,011		1,144
2028	4,419		191
2029	4,055		—
2030	3,430		—
Thereafter	1,841		—
Total minimum lease payments	24,691		2,479
Less amount representing interest	(2,788)		(198)
Total lease liabilities	$	21,903	$	2,281