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Note 21 - Leases

6 Months Ended

Dec. 31, 2025

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 48 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 $16 for the three months ended December 31, 2025, and December 31, 2024, respectively.

Future minimum rental income in China and Thailand to be received from Fiscal 2026 to the fiscal year ended June 30, 2029 (“Fiscal 2029”) on non-cancelable operating leases is contractually due as follows as of December 31, 2025:

Remainder of 2026	$	76
2027		137
2028		149
2029		27
	$	389

Future minimum rental income in China and Thailand to be received from Fiscal 2026 to Fiscal 2027 on non-cancelable operating leases is contractually due as follows as of June 30, 2025:

2026	$	65
2027		23
2028		18
2029		4
	$	110

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 five years and finance leases for plant and equipment.

Supplemental balance sheet information related to leases was as follows:

Components of Lease Balances	December 31,			June 30,
	2025			2025
	(Unaudited)
Finance Leases (Plant and Equipment)
Plant and equipment, at cost	$	397		$	400
Accumulated depreciation		(170	)		(131	)
Plant and Equipment, Net	$	227		$	269

Current portion of finance leases	$	13		$	43
Total Finance Lease Liabilities	$	13		$	43

Operating Leases (Corporate Offices, Manufacturing and Testing Facilities)
Operating lease right-of-use assets, Net	$	2,551		$	864

Current portion of operating leases		617			540
Non-current portion of operating leases, Net		1,934			324
Total Operating Lease Liabilities	$	2,551		$	864

	Three Months Ended				Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2025		2024		2025		2024
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)

Lease Cost
Finance lease cost:
Interest on finance lease	$	1	$	1	$	1	$	2
Amortization of right-of-use assets		20		19		40		38
Total finance lease cost	$	21	$	20		41		40

Operating Lease Costs	$	216	$	387	$	421	$	775

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

	Six Months Ended
	December 31,			December 31,
	2025			2024
	(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		(421	)		(722	)
Finance cash flows from finance leases		(30	)		(38	)
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities		2,078			-

Weighted-Average Remaining Lease Term:
Finance leases		0.25			1.25
Operating leases		4.42			1.50
Weighted-Average Discount Rate:
Finance leases		2.28	%		2.28	%
Operating leases		4.68	%		5.51	%

As of December 31, 2025, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

	*Operating*			*Finance*
	*Lease*			*Lease*
	*Liabilities*			*Liabilities*
Fiscal Year
Remainder of Fiscal 2026	$	433		$	13
2027		590			-
2028		569			-
Thereafter		1,238			-
Total future minimum lease payments	$	2,830		$	13
Less: amount representing interest		(279	)		-
Present value of net minimum lease payments	$	2,551		$	13

Presentation on balance sheet
Current	$	617		$	13
Non-Current	$	1,934		$	-

As of June 30, 2025, future minimum lease payments under finance leases and noncancelable operating leases were as follows:

	*Operating*			*Finance*
	*Lease*			*Lease*
	*Liabilities*			*Liabilities*
Fiscal Year
2026	$	560		$	44
2027		146			-
2028		117			-
Thereafter		100			-
Total future minimum lease payments	$	923		$	44
Less: amount representing interest		(59	)		(1	)
Present value of net minimum lease payments	$	864		$	43

Presentation on statement of financial position
Current	$	540		$	43
Non-Current	$	324		$	-