Note 13 - Leases

12 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Lessee, Leases [Text Block]

NOTE 13 — 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 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, and the number of operating leases increased in fiscal 2026 as a result of the acquisition of Royston; most of Royston’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, 2026, 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)	2026		2025			2024
Operating lease cost	$	14,112	$	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	$	14,112	$	7,117		$	6,215

Supplemental Cash Flow Information
(in thousands)	2026		2025		2024
Cash flows from operating leases
Fixed payments - operating lease cash flows	$	13,771	$	6,991	$	5,996
Liability reduction - operating cash flows	$	11,205	$	5,998	$	4,984
Assets obtained in exchange for operating lease obligations	$	20,433	$	7,462	$	-
Cash flows from finance leases
Interest - operating cash flows	$	-	$	63	$	53
Repayments of principal portion - financing cash flows	$	-	$	340	$	324

Operating Leases:		2026			2025
Total operating right-of-use assets	$	49,490		$	17,187
Accrued Expenses		12,333			6,037
Long-term operating lease liability		38,462			12,047
Total operating lease liabilities	$	50,795		$	18,084
Weighted Average remaining Lease Term (in years)		6.28			3.29
Weighted Average Discount Rate		5.30	%		5.70	%

	Operating Lease
Maturities of Lease Liability:	Liabilities
2027	$	12,333
2028		12,206
2029		7,729
2030		5,760
2031		4,477
Thereafter		17,667
Total lease payments	$	60,172
Less: Interest		(9,377	)
Present Value of Lease Liabilities	$	50,795