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FINANCE RECEIVABLES
 6 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
FINANCE RECEIVABLES FINANCE RECEIVABLES
The Company's finance receivables consist of financed devices under the Quickstart program and 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 December 31, 2020 and June 30, 2020, finance receivables consist of the following:
($ in thousands)December 31,
2020		June 30,
2020
Current finance receivables, net$7,196 7,468 
Finance receivables due after one year, net10,296 11,213 
Total finance receivables, net of allowance of $909 and $150, respectively
$17,492 $18,681 

We collect lease payments from customers primarily 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 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. We categorize outstanding receivables into two categories: high ratio customers (customers who have adequate transaction processing volumes to cover monthly fees) and low ratio customers (customers that do not consistently have adequate transaction processing volumes to cover monthly fees). 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 December 31, 2020, the gross lease receivable 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$4,161 $6,291 $3,127 $2,583 $683 $53 $16,898 
30 days and under16 57 25 40 7 — 145 
31-60 days32 84 24 34 2 — 176 
61-90 days30 51 15 34 2 — 132 
Greater than 90 days330 367 108 211 32 2 1,050 
Total finance receivables$4,569 $6,850 $3,299 $2,902 $726 $55 $18,401 
At June 30, 2020, the gross lease receivable 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 December 31, 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$3,940 $6,158 $2,659 $2,369 $525 $49 $15,700 
Low ratio customers629 692 640 533 201 6 2,701 
Total finance receivables$4,569 $6,850 $3,299 $2,902 $726 $55 $18,401 

The following table represents a rollforward of the allowance for finance receivables for the six months ending December 31, 2020 and 2019:
Six months ended December 31,Six months ended December 31,
($ in thousands)20202019
Balance at June 30$150 $606 
Impact of ASC 326 *409 — 
Provision for expected losses— 1 
Balance at September 30559 607 
Provision for expected losses350 — 
Write-offs— (5)
Balance at December 31$909 $602 
*    The Company adopted ASC 326 on July 1, 2020.
Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows:
($ in thousands)
2021$7,561 
20225,875 
20234,561 
20242,818 
20251,204 
Thereafter85 
Total amounts to be collected22,104 
Less: interest(3,703)
Less: allowance for receivables(909)
Total finance receivables$17,492