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FINANCE RECEIVABLES
 6 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
FINANCE RECEIVABLES FINANCE RECEIVABLESThe Company's finance receivables consist of financed devices under its QuickStart program. Predominately all of the Company’s finance receivables agreements are classified as non-cancellable sixty-month sales-type leases. As of December 31, 2022 and June 30, 2022, finance receivables consist of the following:
($ in thousands)December 31,
2022		June 30,
2022
Current finance receivables, net$7,757 $6,721 
Finance receivables due after one year, net14,520 14,727 
Total finance receivables, net of allowance of $864 and $760, respectively
$22,277 $21,448 

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, 2022, 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$8,689 $5,066 $2,044 $2,312 $2,996 $(5)$21,102 
30 days and under29 59 38 57 73 8 264 
31-60 days14 37 32 50 66 8 207 
61-90 days12 22 32 42 63 9 180 
Greater than 90 days39 112 140 490 530 77 1,388 
Total finance receivables$8,783 $5,296 $2,286 $2,951 $3,728 $97 $23,141 


At June 30, 2022, 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$7,451 $5,047 $2,758 $2,593 $2,807 $103 $20,759 
30 days and under18 10 32 56 94 3 213 
31-60 days25 23 26 58 100 — 232 
61-90 days25 14 20 46 91 — 196 
Greater than 90 days41 47 97 232 391 — 808 
Total finance receivables$7,560 $5,141 $2,933 $2,985 $3,483 $106 $22,208 


At December 31, 2022, 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$8,744 $4,983 $1,956 $2,299 $3,039 $22 $21,043 
Low ratio customers39 313 330 652 689 75 2,098 
Total finance receivables$8,783 $5,296 $2,286 $2,951 $3,728 $97 $23,141 


At June 30, 2022, 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$7,498 $4,853 $2,688 $2,623 $2,950 $102 $20,714 
Low ratio customers62 288 245 362 533 4 1,494 
Total finance receivables$7,560 $5,141 $2,933 $2,985 $3,483 $106 $22,208 


The following table represents a rollforward of the allowance for finance receivables for the six months ending December 31, 2022 and 2021:
Six months ended December 31,Six months ended December 31,
($ in thousands)20222021
Balance at June 30$760 $1,109 
Provision for expected losses392 100 
Balance at September 30$1,152 $1,209 
Provision for expected losses— 100 
Write-offs(288)(247)
Balance at December 31$864 $1,062 
Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows:
($ in thousands)
2022$4,390 
20237,483 
20245,730 
20254,311 
20262,519 
Thereafter631 
Total amounts to be collected25,064 
Less: interest(1,923)
Less: allowance for receivables(864)
Total finance receivables$22,277