Note 14 - Leases

3 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 14 - 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. 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 number of operating leases increased in fiscal 2024 as a result of the acquisition of EMI; most of EMI’s operating leases are building leases.

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. The rent expense for these leases was immaterial for September 30, 2024, and 2023.

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
	September 30
(In thousands)	2024			2023
Operating lease cost	$	1,622		$	906
Financing lease cost:
Amortization of right of use assets		73			73
Interest on lease liabilities		11			15
Variable lease cost		7			22
Sublease income		(39	)		-
Total lease cost	$	1,674		$	1,016

	Three Months Ended
Supplemental Cash Flow Information	September 30
(in thousands)	2024		2023
Cash flows from operating leases
Fixed payments - operating lease cash flows	$	1,629	$	764
Liability reduction - operating cash flows	$	1,380	$	680
Cash flows from finance leases
Interest - operating cash flows	$	11	$	15
Repayments of principal portion - financing cash flows	$	83	$	77

Operating Leases:	September 30, 2024			June 30, 2024
Total operating right-of-use assets	$	14,958		$	15,912
Accrued Expenses		5,182			5,560
Long-term operating lease liability		10,782			11,267
Total operating lease liabilities	$	15,964		$	16,827
Weighted Average remaining Lease Term (in years)		3.35			3.49
Weighted Average Discount Rate		5.93	%		5.90	%

Financing Leases	September 30, 2024			June 30, 2024
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		-			41
Accumulated depreciation		(1,282	)		(1,232	)
Total finance lease assets, net	$	751		$	842
Accrued expenses (Current liabilities)	$	324		$	324
Long-term finance lease liability		553			636
Total finance lease liabilities	$	877		$	960
Weighted Average remaining Lease Term (in years)		2.58			2.83
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Net Lease Commitments
2025	$	5,182		$	324		$	5,506
2026		5,040			362			5,402
2027		4,107			257			4,364
2028		2,468			-			2,468
2029		560			-			560
Thereafter		374			-			374
Total lease payments	$	17,731		$	943		$	18,674
Less: Interest		(1,767	)		(66	)		(1,833	)
Present Value of Lease Liabilities	$	15,964		$	877		$	16,841