Note 15 - Leases

9 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Lessee, Leases [Text Block]

NOTE 15 - LEASES

The Company leases certain manufacturing facilities along with a small office space, several forklifts, several small tooling items and various items of office equipment. The Company also acquired buildings, machinery and forklift leases with the acquisition of JSI, as well as one sublease. All but two of the Company’s leases are operating leases. Leases have a remaining term of one to seven years some of which have an option to renew. The Company does not assume renewals in determining the lease term unless the renewals are deemed reasonably certain. The lease agreements do not contain any material residual guarantees or material variable lease payments.

The Company has periodically entered into short-term operating leases with an initial term of twelve months or less. The Company elected not to record these leases on the balance sheet. For the three and nine months ended March 31, 2022 and 2021, the rent expense for these leases is immaterial.

The Company has certain leases that contain lease and non-lease components and has elected to utilize the practical expedient to account for these components together as a single lease component.

Lease expense is recognized on a straight-line basis over the lease term. The Company used its incremental borrowing rate when determining the present value of lease payments.

	Three Months Ended					Nine Months Ended
	March 31					March 31
(In thousands)	2022			2021		2022			2021
Operating lease cost	$	868		$	576	$	2,617		$	1,714
Financing lease cost:
Amortization of right of use assets		74			73		221			218
Interest on lease liabilities		19			22		61			69
Variable lease cost		22			-		65			2
Sublease income		(94	)		-		(283	)		-
Total lease cost	$	889		$	671	$	2,681		$	2,003

Supplemental Cash Flow Information:

	Nine Months Ended
	March 31
(In thousands)	2022		2021
Cash flows from operating leases
Fixed payments - operating cash flows	$	2,669	$	1,707
Liability reduction - operating cash flows	$	2,271	$	1,397
Cash flows from finance leases
Interest - operating cash flows	$	61	$	69
Repayments of principal portion - financing cash flows	$	196	$	178

Operating Leases:	March 31,			June 30,
	2022			2021
Total operating right-of-use assets	$	9,464		$	11,579
Accrued expenses (Current liabilities)	$	1,070		$	1,424
Long-term operating lease liability		9,068			10,890
Total operating lease liabilities	$	10,138		$	12,314
Weighted Average remaining Lease Term (in years)		3.27			3.93
Weighted Average Discount Rate		4.81	%		4.81	%

Finance Leases:	March 31,			June 30,
	2022			2021
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		30			30
Accumulated depreciation		(561	)		(339	)
Total finance lease assets, net	$	1,502		$	1,724
Accrued expenses (Current liabilities)	$	272		$	263
Long-term finance lease liability		1,316			1,521
Total finance lease liabilities	$	1,588		$	1,784
Weighted Average remaining Lease Term (in years)		5.03			5.78
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases			Net Lease Commitments
2022	$	1,029		$	105		$	(94	)	$	1,040
2023		3,583			342			(377	)		3,548
2024		3,280			337			(377	)		3,240
2025		2,131			362			(31	)		2,462
2026		829			362			-			1,191
Thereafter		221			303			-			524
Total lease payments	$	11,073		$	1,811		$	(879	)	$	12,005
Less: Interest		(935	)		(223	)					(1,158	)
Present Value of Lease Liabilities	$	10,138		$	1,588					$	10,847