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Note 21 - Leases

3 Months Ended

Sep. 30, 2024

21.

LEASES

Company as Lessor

Operating leases under which the Company is the lessor arise from leasing the Company’s commercial real estate investment property to third parties. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of 20 years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $17 for the three months ended September 30, 2024 and September 30, 2023, respectively.

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to the fiscal year ended June 30, 2029 (“Fiscal 2029”) on non-cancelable operating leases is contractually due as follows as of September 30, 2024:

Remainder of 2025	$	115
2026		58
2027		31
2028		18
2029		6
	$	228

Future minimum rental income in China and Thailand to be received from Fiscal 2025 to Fiscal 2027 on non-cancelable operating leases is contractually due as follows as of June 30, 2024:

2025	$	131
2026		44
2027		16
	$	191

Company as Lessee

The Company is the lessee under operating leases for corporate offices and manufacturing and testing facilities with remaining lease terms of one year to four years and finance leases for plant and equipment.

Supplemental balance sheet information related to leases was as follows (in thousands):

Components of Lease Balances	Sept. 30,			June 30,
	2024			2024
	(Unaudited)
Finance Leases (Plant and Equipment)
Plant and equipment, at cost	$	1,854		$	1,649
Accumulated depreciation		(1,263	)		(1,091	)
Plant and Equipment, Net	$	591		$	558

Current portion of finance leases	$	49		$	57
Net of current portion of finance leases		24			34
Total Finance Lease Liabilities	$	73		$	91

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)
Operating lease right-of-use assets, Net	$	1,626		$	1,887

Current portion of operating leases		1,095			1,162
Net of current portion of operating leases		531			725
Total Operating Lease Liabilities	$	1,626		$	1,887

	Three Months Ended
	Sept. 30,		Sept. 30,
	2024		2023
	(Unaudited)		(Unaudited)

Lease Cost
Finance lease cost:
Interest on finance lease	$	1	$	13
Amortization of right-of-use assets		15		55
Total finance lease cost		16		68

Operating Lease Costs	$	388	$	362

Other information related to leases was as follows (in thousands except lease term and discount rate):

	Three Months Ended
	Sept. 30,			Sept. 30,
	2024			2023
	(Unaudited)			(Unaudited)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases	$	(1	)	$	(2	)
Operating cash flows from operating leases		(363	)		(346	)
Finance cash flows from finance leases		(23	)		(26	)
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities		-			932

Weighted-Average Remaining Lease Term:
Finance leases		1.73			1.61
Operating leases		1.42			2.25
Weighted-Average Discount Rate:
Finance leases		2.35	%		2.99	%
Operating leases		5.41	%		5.61	%

As of September 30, 2024, the maturities of the Company’s operating and finance lease liabilities are as follow:

	Operating			Finance
	Lease			Lease
	Liabilities			Liabilities
Fiscal Year
Remainder of Fiscal 2025		914			40
2026		690			36
2027		92			-
Total future minimum lease payments	$	1,696		$	76
Less: amount representing interest		(70	)		(3	)
Present value of net minimum lease payments	$	1,626		$	73

Presentation on statement of financial position
Current		1,095			49
Non-Current		531			24

As of June 30, 2024, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

	Operating			Finance
	Lease			Lease
	Liabilities			Liabilities
Fiscal Year
2025	$	1,234		$	61
2026		658			34
2027		86			-
Total future minimum lease payments	$	1,978		$	95
Less: amount representing interest		(91	)		(4	)
Present value of net minimum lease payments	$	1,887		$	91

Presentation on statement of financial position
Current	$	1,162		$	57
Non-Current		725			34