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FINANCE RECEIVABLES
 6 Months Ended
Dec. 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 December 31, 2021 and June 30, 2021, finance receivables consist of the following:
($ in thousands)December 31,
2021		June 30,
2021
Current finance receivables, net$8,247 $7,967 
Finance receivables due after one year, net10,906 11,632 
Total finance receivables, net of allowance of $1,062 and $1,109, respectively
$19,153 $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 December 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$6,587 $3,417 $4,570 $2,555 $1,319 $17 $18,465 
30 days and under5 13 47 45 5 — 115 
31-60 days20 32 74 51 20 — 197 
61-90 days12 25 64 44 18 1 164 
Greater than 90 days26 121 484 492 87 64 1,274 
Total finance receivables$6,650 $3,608 $5,239 $3,187 $1,449 $82 $20,215 

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 December 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$6,334 $3,194 $4,462 $2,273 $1,209 $11 $17,483 
Low ratio customers316 414 777 914 240 71 2,732 
Total finance receivables$6,650 $3,608 $5,239 $3,187 $1,449 $82 $20,215 

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 six months ending December 31, 2021 and 2020:
Six months ended December 31,Six months ended December 31,
($ 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 
Provision for expected losses100 350 
Write-offs(247)— 
Balance at December 31$1,062 $909 
*

* 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$8,020 
20236,241 
20244,625 
20253,110 
20261,726 
Thereafter313 
Total amounts to be collected24,035 
Less: interest(3,820)
Less: allowance for receivables(1,062)
Total finance receivables$19,153