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FINANCE RECEIVABLES
 12 Months Ended
Jun. 30, 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 June 30, 2021 and 2020, finance receivables consist of the following:
As of June 30,
($ in thousands)20212020
Current finance receivables, net$7,967 $7,468 
Finance receivables due after one year, net11,632 11,213 
Total finance receivables, net of allowance of $1,109 and $150, respectively
$19,599 $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 June 30, 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$6,504 $4,109 $3,751 $2,522 $1,249 $982 $19,117 
30 days and under20 67 90 93 11 1 282 
31 - 60 days4 9 22 2 1 — 38 
61 - 90 days10 42 66 54 10 — 182 
Greater than 90 days46 69 490 419 54 11 1,089 
Total finance receivables$6,584 $4,296 $4,419 $3,090 $1,325 $994 $20,708 

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 June 30, 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$6,184 $3,963 $3,602 $2,362 $1,181 $975 $18,267 
Low ratio customers400 333 817 728 144 19 2,441 
Total finance receivables$6,584 $4,296 $4,419 $3,090 $1,325 $994 $20,708 

At June 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$4,801 $4,209 $4,402 $2,521 $356 $14 $16,303 
Low ratio customers234 585 1,142 323 227 17 2,528 
Total finance receivables$5,035 $4,794 $5,544 $2,844 $583 $31 $18,831 
The following table represents a rollforward of the allowance for finance receivables for the year ending June 30, 2021 and 2020:
($ in thousands)Year ended June 30, 2021Year ended June 30, 2020
Balance at June 30$150 $606 
Impact of ASC 326*409 — 
Provision for expected losses550 142 
Write-offs— (598)
Balance June 30$1,109 $150 
* 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 after June 30, 2021 are as follows:
($ in thousands)
2022$11,764 
20235,669 
20243,852 
20252,314 
2026983 
Thereafter13 
Total amounts to be collected24,595 
Less: interest(3,887)
Less: allowance for nonperforming receivables(1,109)
Total finance receivables$19,599