Note 15 - Leases

9 Months Ended

Mar. 31, 2025

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. 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 number of operating leases increased in fiscal 2025 as a result of the acquisition of CBH; most of CBH’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 March 31, 2025, and 2024.

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)	2025		2024			2025			2024
Operating lease cost	$	1,679	$	993		$	4,910		$	2,893
Financing lease cost:
Amortization of right of use assets		73		73			218			219
Interest on lease liabilities		9		13			30			41
Variable lease cost		-		22			7			65
Sublease income		-		(116	)		(39	)		(348	)
Total lease cost	$	1,761	$	985		$	5,126		$	2,870

Supplemental Cash Flow Information:	Nine Months Ended
	March 31
(In thousands)	2025		2024
Cash flows from operating leases
Fixed payments - operating cash flows	$	5,055	$	2,806
Liability reduction - operating cash flows	$	4,328	$	2,421
Cash flows from finance leases
Interest - operating cash flows	$	30	$	41
Repayments of principal portion - financing cash flows	$	253	$	241

Operating Leases:	March 31,			June 30,
	2025			2024
Total operating right-of-use assets	$	17,682		$	15,912
Accrued expenses (Current liabilities)	$	5,339		$	5,560
Long-term operating lease liability		13,162			11,267
Total operating lease liabilities	$	18,501		$	16,827
Weighted Average remaining Lease Term (in years)		3.49			3.49
Weighted Average Discount Rate		5.74	%		5.90	%

Finance Leases:	March 31,			June 30,
	2025			2024
Buildings under finance leases	$	2,033		$	2,033
Equipment under finance leases		-			41
Accumulated depreciation		(1,428	)		(1,232	)
Total finance lease assets, net	$	605		$	842
Accrued expenses (Current liabilities)	$	327		$	324
Long-term finance lease liability		383			636
Total finance lease liabilities	$	710		$	960
Weighted Average remaining Lease Term (in years)		2.08			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	$	5,339		$	327		$	(38	)	$	5,628
2026		5,957			362			-			6,319
2027		5,226			57			-			5,283
2028		2,311			-			-			2,311
2029		1,463			-			-			1,463
Thereafter		302			-			-			302
Total lease payments	$	20,598		$	746		$	(38	)	$	21,306
Less: Interest		(2,097	)		(36	)					(2,133	)
Present Value of Lease Liabilities	$	18,501		$	710					$	19,173