Note 14 - Leases

6 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, 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 December 31, 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					Six Months Ended
	December 31					December 31
(In thousands)	2024		2023			2024			2023
Operating lease cost	$	1,610	$	993		$	3,231		$	1,900
Financing lease cost:
Amortization of right of use assets		73		73			145			146
Interest on lease liabilities		10		14			22			28
Variable lease cost		-		22			7			44
Sublease income		-		(116	)		(39	)		(232	)
Total lease cost	$	1,693	$	986		$	3,366		$	1,886

Supplemental Cash Flow Information:	Six Months Ended
	December 31
(In thousands)	2024		2023
Cash flows from operating leases
Fixed payments - operating cash flows	$	3,298	$	1,778
Liability reduction - operating cash flows	$	2,813	$	1,537
Cash flows from finance leases
Interest - operating cash flows	$	21	$	28
Repayments of principal portion - financing cash flows	$	168	$	156

Operating Leases:	December 31,			June 30,
	2024			2024
Total operating right-of-use assets	$	15,517		$	15,912
Accrued expenses (Current liabilities)	$	5,619		$	5,560
Long-term operating lease liability		10,694			11,267
Total operating lease liabilities	$	16,313		$	16,827
Weighted Average remaining Lease Term (in years)		3.40			3.49
Weighted Average Discount Rate		5.82	%		5.90	%

Finance Leases:	December 31,			June 30,
	2024			2024
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		-			41
Accumulated depreciation		(1,355	)		(1,232	)
Total finance lease assets, net	$	678		$	842
Accrued expenses (Current liabilities)	$	327		$	324
Long-term finance lease liability		468			636
Total finance lease liabilities	$	795		$	960
Weighted Average remaining Lease Term (in years)		2.33			2.83
Weighted Average Discount Rate		4.86	%		4.86	%

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities			Operating Subleases			Net Lease Commitments
2025	$	5,619		$	327		$	(38	)	$	5,908
2026		5,360			362			-			5,722
2027		4,337			150			-			4,487
2028		1,319			-			-			1,319
2029		972			-			-			972
Thereafter		489			-			-			489
Total lease payments	$	18,096		$	839		$	(38	)	$	18,897
Less: Interest		(1,783	)		(44	)					(1,827	)
Present Value of Lease Liabilities	$	16,313		$	795					$	17,070