Note 12 - Leases

12 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Lessee, Leases [Text Block]

NOTE 12 — 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 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 June 30, 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.

(In thousands)	2025			2024
Operating lease cost	$	6,822		$	6,248
Financing lease cost:
Amortization of right of use assets		288			291
Interest on lease liabilities		38			53
Variable lease cost		7			87
Sublease income		(38	)		(464	)
Total lease cost	$	7,117		$	6,215

Supplemental Cash Flow Information
(in thousands)	2025		2024
Cash flows from operating leases
Fixed payments - operating lease cash flows	$	6,991	$	5,996
Liability reduction - operating cash flows	$	5,998	$	4,984
Cash flows from finance leases
Interest - operating cash flows	$	63	$	53
Repayments of principal portion - financing cash flows	$	340	$	324

Operating Leases:
Total operating right-of-use assets	$	17,187		$	15,912
Accrued Expenses		6,037			5,560
Long-term operating lease liability		12,047			11,267
Total operating lease liabilities	$	18,084		$	16,827
Weighted Average remaining Lease Term (in years)		3.29			3.49
Weighted Average Discount Rate		5.70	%		5.70	%

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

In fiscal 2025, the Company terminated its finance lease as of June 30, 2025. In conjunction with the termination of the finance lease, the Company entered into a new lease to expand its production capabilities in its Houston, Texas location. The new lease is effective October 1, 2025, and expires September 30, 2035.

Maturities of Lease Liability:	Operating Lease Liabilities			Finance Lease Liabilities		Operating Subleases		Net Lease Commitments
2026	$	6,740		$	-	$	-	$	6,740
2027		5,906			-		-		5,906
2028		4,161			-		-		4,161
2029		1,781			-		-		1,781
2030		1,214			-		-		1,214
Thereafter		172			-		-		172
Total lease payments	$	19,974		$	-	$	-	$	19,974
Less: Interest		(1,890	)		-				(1,890	)
Present Value of Lease Liabilities	$	18,084		$	-			$	18,084