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FINANCE RECEIVABLES
 9 Months Ended
Mar. 31, 2021
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 March 31, 2021 and June 30, 2020, finance receivables consist of the following:
($ in thousands)March 31,
2021		June 30,
2020
Current finance receivables, net$7,050 $7,468 
Finance receivables due after one year, net11,123 11,213 
Total finance receivables, net of allowance of $909 and $150, respectively
$18,173 $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 March 31, 2021, 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$4,353 $4,980 $5,257 $1,669 $1,381 $56 $17,696 
30 days and under14 31 84 17 5 1 152 
31-60 days25 89 113 41 4 1 273 
61-90 days8 30 78 8 2 2 128 
Greater than 90 days37 67 595 78 29 27 833 
Total finance receivables$4,437 $5,197 $6,127 $1,813 $1,421 $87 $19,082 

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 March 31, 2021, 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$4,095 $4,851 $5,102 $1,437 $1,294 $40 $16,819 
Low ratio customers342 346 1,025 376 127 47 2,263 
Total finance receivables$4,437 $5,197 $6,127 $1,813 $1,421 $87 $19,082 

The following table represents a rollforward of the allowance for finance receivables for the nine months ending March 31, 2021 and 2020:
Nine months ended March 31,Nine months ended March 31,
($ in thousands)20212020
Balance at June 30$150 $606 
Impact of adoption of ASC 326*409 — 
Provision for expected losses350 101 
Write-offs— (5)
Balance at March 31$909 $702 
* 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$6,209 
20226,086 
20234,841 
20243,399 
20251,707 
Thereafter379 
Total amounts to be collected22,621 
Less: interest(3,539)
Less: allowance for receivables(909)
Total finance receivables$18,173