OPERATING AND FINANCING LEASES

3 Months Ended

Sep. 30, 2025

Operating And Financing Leases

OPERATING AND FINANCING LEASES

NOTE 4 – OPERATING AND FINANCING LEASES

The Company accounts for its various operating leases in accordance with Accounting Standards Codification (ASC) 842 – “Leases”, as updated by ASU 2016-02. At the inception of a lease, the Company recognizes right-of-use lease assets and related lease liabilities measured at present value of future lease payments on its balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. The Company most common initial term varies in length from 2 to 19 years. Including renewal options negotiated with the landlord, we have a total span of 2 to 16 years at the facilities we lease. The Company reviewed its contracts with vendors and customers, determining that its right-of-use lease assets consisted of only office space operating leases. In determining the right-of-use lease assets and liabilities, the Company did recognize lease extension options which the Company feels would be reasonably exercised. Our incremental borrowing rate (“IBR”) used to discount the stream of operating lease payments is closely related to the interest rates available to the Company.

A reconciliation of operating and financing lease payments undiscounted cash flows to lease liabilities recognized as of September 30, 2025 is as follows:

12 Months Ending September 30,		Operating Lease Payments			Financing Lease Payments
	2026	$	6,118		$	244
	2027		6,004			102
	2028		5,762			—
	2029		5,464			—
	2030		5,226			—
	Thereafter		25,570			—
	Present value discount		(14,558	)		—
	Total lease liability	$	39,586		$	346

Weighted Average Remaining Lease Term

	For the three months ended Sept. 30,
	2025			2024
Operating leases - years		10.0			10.8
Finance lease - years		1.3			2.3
Weighted Average Discount Rate
Operating leases		6.6	%		6.5	%
Finance lease		3.6	%		3.6	%

The components of lease expense were as follows:

Components of lease expense
	For the three months ended Sept. 30,
	2025		2024
Operating lease cost	$	1,583	$	1,503
Finance lease cost:
Depreciation of leased equipment	$	77	$	50
Interest on lease liabilities		—		4
Total finance lease cost	$	77	$	54

Supplemental cash flow information related to leases was as follows:

Supplemental cash flow information related to leases
	For the three months ended Sept. 30,
Cash paid for amounts included in the measurement of lease liabilities:	2025		2024
Operating cash flows from operating leases	$	1,492	$	1,138
Financing cash flows from financing leases	$	61	$	41
Right-of-use and equipment assets obtained in exchange for lease obligations:
Operating leases	$	1,901	$	359