Note 14 - Leases

3 Months Ended

Sep. 30, 2025

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 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, 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
	September 30
(In thousands)	2025		2024
Operating lease cost	$	1,875	$	1,622
Financing lease cost:
Amortization of right of use assets		-		73
Interest on lease liabilities		-		11
Variable lease cost		-		7
Sublease income		-		(39	)
Total lease cost	$	1,875	$	1,674

	Three Months Ended
Supplemental Cash Flow Information	September 30
(in thousands)	2025		2024
Cash flows from operating leases
Fixed payments - operating lease cash flows	$	1,753	$	1,629
Liability reduction - operating cash flows	$	1,687	$	1,380
Cash flows from finance leases
Interest - operating cash flows	$	-	$	11
Repayments of principal portion - financing cash flows	$	-	$	83

Operating Leases:	September 30, 2025			June 30, 2025
Total operating right-of-use assets	$	16,570		$	17,187
Accrued Expenses		5,695			6,037
Long-term operating lease liability		11,687			12,047
Total operating lease liabilities	$	17,382		$	18,084
Weighted Average remaining Lease Term (in years)		3.32			3.49
Weighted Average Discount Rate		5.78	%		5.70	%

In fiscal 2025, the Company terminated its finance lease in Akron, Ohio 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		Net Lease Commitments
2026	$	6,357		$	-	$	6,357
2027		5,931			-		5,931
2028		3,544			-		3,544
2029		2,039			-		2,039
2030		1,212			-		1,212
Thereafter		68			-		68
Total lease payments	$	19,151		$	-	$	19,151
Less: Interest		(1,769	)		-		(1,769	)
Present Value of Lease Liabilities	$	17,382		$	-	$	17,382