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Note 21 - Leases

6 Months Ended

Dec. 31, 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 and $34 for the three months ended December 31, 2024, and December 31, 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 December 31, 2024:

Remainder of 2025	$	78
2026		61
2027		32
2028		17
2029		4
	$	192

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	Dec. 31,			June 30,
	2024			2024
	(Unaudited)
Finance Leases (Plant and Equipment)
Plant and equipment, at cost	$	1,642		$	1,649
Accumulated depreciation		(1,110	)		(1,091	)
Plant and Equipment, Net	$	532		$	558

Current portion of finance leases	$	42		$	57
Net of current portion of finance leases		12			34
Total Finance Lease Liabilities	$	54		$	91

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)
Operating lease right-of-use assets, Net	$	1,197		$	1,887

Current portion of operating leases		943			1,162
Net of current portion of operating leases		254			725
Total Operating Lease Liabilities	$	1,197		$	1,887

As of December 31, 2024, the Company has entered into lease agreements for properties that have been signed but have not yet commenced. The leases agreements are expected to begin on January 1, 2025 and June 1, 2025 respectively. The future minimum lease payments are $9 for the remainder of Fiscal 2025, $69 for Fiscal 2026, $66 for Fiscal 2027 and $123 thereafter. Since the lease terms have yet to commence, the Company has not recognized a Right-of-Use (ROU) asset and its corresponding lease liability in the balance sheet as of December 31, 2024. The ROU asset and lease liabilities will be recognized in the financial statements when the lease term commences.

	Three Months Ended				Six Months Ended
	Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2024		2023		2024		2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Lease Cost
Finance lease cost:
Interest on finance lease	$	1	$	2	$	2	$	5
Amortization of right-of-use assets		19		12		38		56
Total finance lease cost		20		14		40		61

Operating Lease Costs	$	387	$	385	$	775	$	754

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

	Six Months Ended
	Dec. 31,			Dec. 31,
	2024			2023
	(Unaudited)			(Unaudited)
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases	$	2		$	3
Operating cash flows from operating leases		722			693
Finance cash flows from finance leases		38			55
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities					-

Weighted-Average Remaining Lease Term:
Finance leases		1.25			0.80
Operating leases		1.50			2.08
Weighted-Average Discount Rate:
Finance leases		2.28	%		2.89	%
Operating leases		5.51	%		5.51	%

As of December 31, 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		670			22
2026		437			34
2027		55
Thereafter		86			-
Total future minimum lease payments	$	1,248		$	56
Less: amount representing interest		(51	)		(2	)
Present value of net minimum lease payments	$	1,197		$	54

Presentation on statement of financial position
Current		943			42
Non-Current		254			12

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