Note 13 - Leases

9 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Lessee, Leases [Text Block]

NOTE 13 - 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 has 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, 2024, and 2023, 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)	2024			2023			2024			2023
Operating lease cost	$	993		$	884		$	2,893		$	2,661
Financing lease cost:
Amortization of right of use assets		73			74			219			221
Interest on lease liabilities		13			16			41			51
Variable lease cost		22			22			65			65
Sublease income		(116	)		(116	)		(348	)		(348	)
Total lease cost	$	985		$	880		$	2,870		$	2,650

Supplemental Cash Flow Information:	Nine Months Ended
	March 31
(In thousands)	2024		2023
Cash flows from operating leases
Fixed payments - operating cash flows	$	2,806	$	2,754
Liability reduction - operating cash flows	$	2,421	$	2,451
Cash flows from finance leases
Interest - operating cash flows	$	41	$	51
Repayments of principal portion - financing cash flows	$	241	$	192

Operating Leases:	March 31,			June 30,
	2024			2023
Total operating right-of-use assets	$	9,063		$	8,921
Accrued expenses (Current liabilities)	$	3,557		$	3,566
Long-term operating lease liability		6,222			5,954
Total operating lease liabilities	$	9,779		$	9,520
Weighted Average remaining Lease Term (in years)		3.77			3.31
Weighted Average Discount Rate		5.35	%		5.44	%

Finance Leases:	March 31,			June 30,
	2024			2023
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		41			34
Accumulated depreciation		(1,159	)		(929	)
Total finance lease assets, net	$	915		$	1,138
Accrued expenses (Current liabilities)	$	317		$	284
Long-term finance lease liability		719			960
Total finance lease liabilities	$	1,036		$	1,244
Weighted Average remaining Lease Term (in years)		3.08			3.83
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases			Net Lease Commitments
2024	$	3,577		$	317		$	(94	)	$	3,800
2025		2,675			362			(31	)		3,006
2026		1,824			362			-			2,186
2027		1,360			114			-			1,474
2028		496			-			-			496
Thereafter		1,049			-			-			1,049
Total lease payments	$	10,981		$	1,155		$	(125	)	$	12,011
Less: Interest		(1,202	)		(119	)					(1,321	)
Present Value of Lease Liabilities	$	9,779		$	1,036					$	10,690