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FINANCE RECEIVABLES
 3 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
FINANCE RECEIVABLES FINANCE RECEIVABLES
The Company's finance receivables consist of financed devices under the Quickstart program and Cantaloupe devices contractually associated with the Seed platform. Predominately all of the Company’s finance receivables agreements are classified as non-cancellable sixty month sales-type leases. As of September 30, 2020 and June 30, 2020, finance receivables consist of the following:
($ in thousands)September 30,
2020		June 30,
2020
Current finance receivables, net$7,356 7,468 
Finance receivables due after one year10,385 11,213 
Total finance receivables, net of nonperforming allowance of $559 and $150, respectively
$17,741 $18,681 

On July 1, 2020, the Company adopted Topic 326 using the modified retrospective approach, and began calculating our allowance for nonperforming finance receivables under an expected loss model rather than an incurred loss model. Prior to July 1, 2020, the allowance was based on an estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date.

We collect lease payments from customers as part of the flow of funds from our transaction processing service. Balances are considered past due if customers do not have sufficient transaction revenue to cover the monthly lease payment by the end of the monthly billing period. The Company routinely monitors customer payment performance and uses prior payment performance as a measure to assess the capability of the customer to repay contractual obligations of the lease agreements as scheduled. On an as-needed basis, qualitative information may be taken into consideration if new information arises related to the customer’s ability to repay the lease.

Credit risk for these receivables is continuously monitored by management and reflected within the allowance for nonperforming finance receivables by aggregating leases with similar risk characteristics into pools that are collectively assessed. Because the Company’s lease contracts generally have similar terms, customer characteristics around transaction processing volume and sales were used to disaggregate the leases. Our key credit quality indicator is the amount of transaction revenue we process for each customer relative to their lease payment due, as we consider this customer characteristic to be the strongest predictor of the risk of customer default. Customers with low processing volume or with transaction sales that are insufficient to cover the lease payment are considered to be at a higher risk of customer default.

Customers are pooled based on their ratio of gross sales to required monthly lease obligations into two categories for high ratio and low ratio customers. Using these two categories, we performed an analysis of historical write-offs to calculate reserve percentages by aging buckets for each category of customer.
At September 30, 2020, the gross lease payable by current payment performance on a contractual basis and year of origination consisted of the following:

Leases by Origination
($ in thousands)Up to 1 Year AgoBetween 1 and 2 Years AgoBetween 2 and 3 Years AgoBetween 3 and 4 Years AgoBetween 4 and 5 Years AgoMore than 5 Years AgoTotal
Current$4,680 $4,013 $4,986 $3,073 $248 $18 $17,018 
30 days and under24 51 102 11 — — 188 
31-60 days5 8 31 10 1 — 55 
61-90 days26 29 64 13 2 — 134 
Greater than 90 days82 164 519 100 31 9 905 
Total finance receivables$4,817 $4,265 $5,702 $3,207 $282 $27 $18,300 

At June 30, 2020, the gross lease payable by current payment performance on a contractual basis and year of origination consisted of the following:

Leases by Origination
($ in thousands)Up to 1 Year AgoBetween 1 and 2 Years AgoBetween 2 and 3 Years AgoBetween 3 and 4 Years AgoBetween 4 and 5 Years AgoMore than 5 Years AgoTotal
Current$4,950 $4,406 $4,811 $2,730 $555 $22 $17,474 
30 days and under40 66 121 28 11 1 267 
31-60 days13 15 13 — — — 41 
61-90 days10 44 62 19 3 — 138 
Greater than 90 days22 263 537 67 14 8 911 
Total finance receivables$5,035 $4,794 $5,544 $2,844 $583 $31 $18,831 

At September 30, 2020, credit quality indicators by year of origination consisted of the following:

Leases by Origination
($ in thousands)Up to 1 Year AgoBetween 1 and 2 Years AgoBetween 2 and 3 Years AgoBetween 3 and 4 Years AgoBetween 4 and 5 Years AgoMore than 5 Years AgoTotal
High ratio customers$4,321 $3,607 $4,434 $2,519 $121 $9 $15,011 
Low ratio customers496 658 1,268 688 161 18 3,289 
Total finance receivables$4,817 $4,265 $5,702 $3,207 $282 $27 $18,300 

The following table represents a rollforward of the allowance for nonperforming finance receivables for the three months ending September 30, 2020 and 2019:
Three months ended September 30,Three months ended September 30,
($ in thousands)20202019
Beginning balance, prior to adopting ASC 326$150 $606 
Impact of ASC 326409 — 
Provision for credit losses— 1 
Charge-offs— — 
Ending balance$559 $607 
Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows:
($ in thousands)
2021$8,563 
20225,607 
20234,447 
20242,675 
20251,126 
Thereafter44 
Total amounts to be collected22,462 
Less: interest(3,603)
Less: allowance for nonperforming receivables(559)
Total finance receivables$18,300