Leases

12 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

6. Leases	Company as Lessee
	As of June 30, 2024, the Company had 32 facilities, consisting of warehouse facilities and administrative offices, financed under operating leases with lease term expirations between 2024 and 2030. Rent expense consists of monthly rental payments under the terms of the Company’s lease agreements recognized on a straight-line basis.
	The following table sets forth the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of June 30, 2024. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.

Fiscal years ending June 30,	Maturity of Operating Lease Liabilities (in thousands)
2025	$	3,395
2026		2,761
2027		1,470
2028		812
2029		519
Thereafter		633
Total lease payments	$	9,590
Less: amounts representing interest		631
Present value of lease liabilities	$	8,959
Less: current portion		3,110
Long-term portion	$	5,849

The table below presents additional information related to the Company’s operating leases (in thousands):

Operating lease cost	Fiscal year ended June 30, 2024		Fiscal year ended June 30, 2023
Operating lease cost (1)	$	3,995	$	3,526
Variable lease cost (2)		4,810		3,391
Total lease cost	$	8,805	$	6,917

(1)	Expenses are classified within selling, general and administrative expenses in the Company’s consolidated statements of operations for the fiscal years ended June 30, 2024 and 2023.
(2)	Certain of the Company’s subsidiaries lease space at locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as part of a revenue sharing arrangement. These expenses are classified within cost of sales in the Company’s consolidated statements of operations for the fiscal years ended June 30, 2024 and 2023.
The table below presents lease-related terms and discount rates as of June 30, 2024 and 2023:

	June 30, 2024		June 30, 2023
Weighted average remaining lease terms
Operating leases		3.6 years		4.0 years
Weighted average discount rate
Operating leases		3.48%		3.45%

The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities for the fiscal years ended June 30, 2024 and 2023 (in thousands):

	Fiscal year ended June 30, 2024		Fiscal year ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:	$	3,995	$	3,526
Operating lease right-of-use assets obtained in exchange for operating lease liabilities:	$	2,955	$	4,403

Company as Lessor

The Company derives a portion of its revenue from equipment leasing arrangements. Such arrangements provide for monthly payments covering the equipment provided, maintenance, and interest. These arrangements meet the criteria to be accounted for as sales type leases. Accordingly, revenue related to the provision of the equipment is recognized upon delivery of the equipment and its acceptance by the customer. Upon the recognition of such revenue, an asset is established for the investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term.

The future minimum lease payments receivable for sales type leases are as follows (in thousands):

Fiscal years ending June 30,	Total Minimum Lease Payments to be Received		Amortization of Unearned Income		Net Investment in Sales Type Leases
2025	$	4,943	$	3,288	$	1,655
2026		4,010		2,564		1,446
2027		3,164		1,842		1,322
2028		2,146		1,114		1,032
2029		1,182		561		621
Thereafter		1,338		597		741
					$	6,817	*

* Excludes non-guaranteed residual values of $2.9 million.

The total net investments in sales type leases, including stated residual values, as of June 30, 2024 and June 30, 2023 was $9.7 million and $9.0 million, respectively. The current portion of $1.7 million and $1.6 million is included in other current assets in the consolidated balance sheets as of June 30, 2024 and June 30, 2023, respectively, and the long term portion of $8.0 million and $7.4 million is included in other assets in the consolidated balance sheets as of June 30, 2024 and June 30, 2023, respectively.