LEASES

12 Months Ended

Jun. 30, 2020

Leases [Abstract]

LEASES

LEASES

Lessee accounting

At June 30, 2020, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Classification	As of June 30, 2020
Assets
Operating leases	Operating lease right-of-use assets	$	5,603
Finance leases	Property and equipment, net	48
Liabilities
Current:
Operating leases	Accrued expenses	1,075
Finance leases	Finance lease obligations and current obligations under long-term debt	42
Non-current:
Operating leases	Operating lease liabilities, non-current	4,749
Finance leases	Finance lease obligations and long-term debt, less current portion	$	18

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2020
Finance lease costs:
Amortization of ROU assets	$	103
Interest on lease assets	10
Operating lease costs*	2,525
Total	$	2,638

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Year ended June 30, 2020
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Financing cash flows from finance leases	$	91
Operating cash flows from finance leases	10
Operating cash flows from operating leases	1,784
Non-cash activity
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	12
Operating lease liabilities	$	3,384

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2020
Weighted-average remaining lease term (years)
Finance leases	1.4
Operating leases	5.2
Weighted-average discount rate
Finance leases	10.0	%
Operating leases	6.8	%

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases			Finance Leases
2021	$	1,440		$	46
2022	1,461			16
2023	1,493			2
2024	1,030			1
2025	627			—
Thereafter	893			—
Total lease payments	$	6,944		$	65
Less: Imputed interest	(1,120		)	(5		)
Present value of lease liabilities	$	5,824		$	60

Prior Year Disclosures

As we have not restated prior year information related to the adoption of ASC 842, certain prior year disclosures are reported under ASC 840 guidance.

Rent expense for operating leases was approximately $1.6 million and $1.2 million for the years ended June 30, 2019 and 2018, respectively.

At June 30, 2019, capital lease obligations were $0.1 million. The total for gross assets under capital leases was approximately $2.4 million and accumulated amortization totaled $2.4 million as of June 30, 2019. Capital lease amortization of $0.1 million and $0.4 million is included in depreciation expense for the years ended June 30, 2019 and 2018, respectively.

The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840 are as follows:

($ in thousands)	Operating Leases		Capital Leases
2020	$	1,326	$	106
2021	1,151		34
2022	1,180		12
2023	1,208		1
2024	859		1
Thereafter	1,550		—
Total minimum lease payments	$	7,274	$	154
Less: interest			(14		)
Present value of minimum lease payments, net			140
Less: current obligations under capital leases			(106		)
Obligations under capital leases, noncurrent			$	34

Lessor accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	June 30, 2020			June 30, 2019
Cost	$	32,445		36,190
Accumulated depreciation	(27,745		)	(30,473		)
Net	$	4,700		$	5,717

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of June 30, 2020 are disclosed within Note 8 - Finance Receivables.

LEASES

LEASES

Lessee accounting

At June 30, 2020, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Classification	As of June 30, 2020
Assets
Operating leases	Operating lease right-of-use assets	$	5,603
Finance leases	Property and equipment, net	48
Liabilities
Current:
Operating leases	Accrued expenses	1,075
Finance leases	Finance lease obligations and current obligations under long-term debt	42
Non-current:
Operating leases	Operating lease liabilities, non-current	4,749
Finance leases	Finance lease obligations and long-term debt, less current portion	$	18

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2020
Finance lease costs:
Amortization of ROU assets	$	103
Interest on lease assets	10
Operating lease costs*	2,525
Total	$	2,638

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Year ended June 30, 2020
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Financing cash flows from finance leases	$	91
Operating cash flows from finance leases	10
Operating cash flows from operating leases	1,784
Non-cash activity
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	12
Operating lease liabilities	$	3,384

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2020
Weighted-average remaining lease term (years)
Finance leases	1.4
Operating leases	5.2
Weighted-average discount rate
Finance leases	10.0	%
Operating leases	6.8	%

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases			Finance Leases
2021	$	1,440		$	46
2022	1,461			16
2023	1,493			2
2024	1,030			1
2025	627			—
Thereafter	893			—
Total lease payments	$	6,944		$	65
Less: Imputed interest	(1,120		)	(5		)
Present value of lease liabilities	$	5,824		$	60

Prior Year Disclosures

As we have not restated prior year information related to the adoption of ASC 842, certain prior year disclosures are reported under ASC 840 guidance.

Rent expense for operating leases was approximately $1.6 million and $1.2 million for the years ended June 30, 2019 and 2018, respectively.

At June 30, 2019, capital lease obligations were $0.1 million. The total for gross assets under capital leases was approximately $2.4 million and accumulated amortization totaled $2.4 million as of June 30, 2019. Capital lease amortization of $0.1 million and $0.4 million is included in depreciation expense for the years ended June 30, 2019 and 2018, respectively.

The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840 are as follows:

($ in thousands)	Operating Leases		Capital Leases
2020	$	1,326	$	106
2021	1,151		34
2022	1,180		12
2023	1,208		1
2024	859		1
Thereafter	1,550		—
Total minimum lease payments	$	7,274	$	154
Less: interest			(14		)
Present value of minimum lease payments, net			140
Less: current obligations under capital leases			(106		)
Obligations under capital leases, noncurrent			$	34

Lessor accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	June 30, 2020			June 30, 2019
Cost	$	32,445		36,190
Accumulated depreciation	(27,745		)	(30,473		)
Net	$	4,700		$	5,717

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of June 30, 2020 are disclosed within Note 8 - Finance Receivables.

LEASES

LEASES

Lessee accounting

At June 30, 2020, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Classification	As of June 30, 2020
Assets
Operating leases	Operating lease right-of-use assets	$	5,603
Finance leases	Property and equipment, net	48
Liabilities
Current:
Operating leases	Accrued expenses	1,075
Finance leases	Finance lease obligations and current obligations under long-term debt	42
Non-current:
Operating leases	Operating lease liabilities, non-current	4,749
Finance leases	Finance lease obligations and long-term debt, less current portion	$	18

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2020
Finance lease costs:
Amortization of ROU assets	$	103
Interest on lease assets	10
Operating lease costs*	2,525
Total	$	2,638

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Year ended June 30, 2020
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Financing cash flows from finance leases	$	91
Operating cash flows from finance leases	10
Operating cash flows from operating leases	1,784
Non-cash activity
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	12
Operating lease liabilities	$	3,384

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2020
Weighted-average remaining lease term (years)
Finance leases	1.4
Operating leases	5.2
Weighted-average discount rate
Finance leases	10.0	%
Operating leases	6.8	%

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases			Finance Leases
2021	$	1,440		$	46
2022	1,461			16
2023	1,493			2
2024	1,030			1
2025	627			—
Thereafter	893			—
Total lease payments	$	6,944		$	65
Less: Imputed interest	(1,120		)	(5		)
Present value of lease liabilities	$	5,824		$	60

Prior Year Disclosures

As we have not restated prior year information related to the adoption of ASC 842, certain prior year disclosures are reported under ASC 840 guidance.

Rent expense for operating leases was approximately $1.6 million and $1.2 million for the years ended June 30, 2019 and 2018, respectively.

At June 30, 2019, capital lease obligations were $0.1 million. The total for gross assets under capital leases was approximately $2.4 million and accumulated amortization totaled $2.4 million as of June 30, 2019. Capital lease amortization of $0.1 million and $0.4 million is included in depreciation expense for the years ended June 30, 2019 and 2018, respectively.

The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840 are as follows:

($ in thousands)	Operating Leases		Capital Leases
2020	$	1,326	$	106
2021	1,151		34
2022	1,180		12
2023	1,208		1
2024	859		1
Thereafter	1,550		—
Total minimum lease payments	$	7,274	$	154
Less: interest			(14		)
Present value of minimum lease payments, net			140
Less: current obligations under capital leases			(106		)
Obligations under capital leases, noncurrent			$	34

Lessor accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	June 30, 2020			June 30, 2019
Cost	$	32,445		36,190
Accumulated depreciation	(27,745		)	(30,473		)
Net	$	4,700		$	5,717

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of June 30, 2020 are disclosed within Note 8 - Finance Receivables.

LEASES

LEASES

Lessee accounting

At June 30, 2020, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Classification	As of June 30, 2020
Assets
Operating leases	Operating lease right-of-use assets	$	5,603
Finance leases	Property and equipment, net	48
Liabilities
Current:
Operating leases	Accrued expenses	1,075
Finance leases	Finance lease obligations and current obligations under long-term debt	42
Non-current:
Operating leases	Operating lease liabilities, non-current	4,749
Finance leases	Finance lease obligations and long-term debt, less current portion	$	18

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2020
Finance lease costs:
Amortization of ROU assets	$	103
Interest on lease assets	10
Operating lease costs*	2,525
Total	$	2,638

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Year ended June 30, 2020
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Financing cash flows from finance leases	$	91
Operating cash flows from finance leases	10
Operating cash flows from operating leases	1,784
Non-cash activity
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities	12
Operating lease liabilities	$	3,384

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2020
Weighted-average remaining lease term (years)
Finance leases	1.4
Operating leases	5.2
Weighted-average discount rate
Finance leases	10.0	%
Operating leases	6.8	%

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases			Finance Leases
2021	$	1,440		$	46
2022	1,461			16
2023	1,493			2
2024	1,030			1
2025	627			—
Thereafter	893			—
Total lease payments	$	6,944		$	65
Less: Imputed interest	(1,120		)	(5		)
Present value of lease liabilities	$	5,824		$	60

Prior Year Disclosures

As we have not restated prior year information related to the adoption of ASC 842, certain prior year disclosures are reported under ASC 840 guidance.

Rent expense for operating leases was approximately $1.6 million and $1.2 million for the years ended June 30, 2019 and 2018, respectively.

At June 30, 2019, capital lease obligations were $0.1 million. The total for gross assets under capital leases was approximately $2.4 million and accumulated amortization totaled $2.4 million as of June 30, 2019. Capital lease amortization of $0.1 million and $0.4 million is included in depreciation expense for the years ended June 30, 2019 and 2018, respectively.

The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840 are as follows:

($ in thousands)	Operating Leases		Capital Leases
2020	$	1,326	$	106
2021	1,151		34
2022	1,180		12
2023	1,208		1
2024	859		1
Thereafter	1,550		—
Total minimum lease payments	$	7,274	$	154
Less: interest			(14		)
Present value of minimum lease payments, net			140
Less: current obligations under capital leases			(106		)
Obligations under capital leases, noncurrent			$	34

Lessor accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	June 30, 2020			June 30, 2019
Cost	$	32,445		36,190
Accumulated depreciation	(27,745		)	(30,473		)
Net	$	4,700		$	5,717

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of June 30, 2020 are disclosed within Note 8 - Finance Receivables.