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FINANCE RECEIVABLES
 3 Months Ended
Sep. 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 September 30, 2021 and June 30, 2021, finance receivables consist of the following:
($ in thousands)September 30,
2021		June 30,
2021
Current finance receivables, net$8,031 $7,967 
Finance receivables due after one year, net10,832 11,632 
Total finance receivables, net of allowance of $1,209 and $1,109, respectively
$18,863 $19,599 

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 sufficient to cover monthly fees) and low ratio customers (customers that do not consistently have adequate transaction processing volumes sufficient 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 September 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$6,673 $2,831 $4,689 $2,602 $1,583 $22 $18,400 
30 days and under14 44 80 86 3 1 228 
31-60 days4 8 35 3 3 — 53 
61-90 days14 27 63 49 5 — 158 
Greater than 90 days102 147 460 439 46 39 1,233 
Total finance receivables$6,807 $3,057 $5,327 $3,179 $1,640 $62 $20,072 

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$6,736 $3,970 $3,942 $3,081 $1,358 $31 $19,118 
30 days and under19 67 90 93 11 1 281 
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$6,815 $4,157 $4,610 $3,649 $1,434 $43 $20,708 

At September 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$6,338 $2,747 $4,624 $2,423 $1,477 $16 $17,625 
Low ratio customers469 310 703 756 163 46 2,447 
Total finance receivables$6,807 $3,057 $5,327 $3,179 $1,640 $62 $20,072 


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$6,415 $3,824 $3,793 $2,920 $1,290 $24 $18,266 
Low ratio customers400 333 817 729 144 19 2,442 
Total finance receivables$6,815 $4,157 $4,610 $3,649 $1,434 $43 $20,708 
The following table represents a rollforward of the allowance for finance receivables for the three months ending September 30, 2021 and 2020:
Three months ended September 30,Three months ended September 30,
($ in thousands)20212020
Balance at June 30$1,109 $150 
Impact of adoption of ASC 326*— 409 
Provision for expected losses100 — 
Balance at September 30$1,209 $559 
* The Company adopted Financial Instruments - Credit Losses (Topic 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)
2022$9,408 
20235,794 
20243,925 
20252,467 
20261,129 
Thereafter66 
Total amounts to be collected22,789 
Less: interest(2,717)
Less: allowance for receivables(1,209)
Total finance receivables$18,863