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FINANCE RECEIVABLES
 9 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
FINANCE RECEIVABLES FINANCE RECEIVABLES
The 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 March 31, 2023 and June 30, 2022, finance receivables consist of the following:
($ in thousands)March 31,
2023		June 30,
2022
Current finance receivables, net$7,477 $6,721 
Finance receivables due after one year, net13,870 14,727 
Total finance receivables, net of allowance of $864 and $760, respectively
$21,347 $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 March 31, 2023, 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$8,570 $5,538 $2,312 $1,814 $1,706 $30 $19,970 
30 days and under72 83 59 69 64 16 363 
31-60 days12 42 29 55 61 14 213 
61-90 days7 30 33 48 58 15 191 
Greater than 90 days27 169 98 393 632 155 1,474 
Total finance receivables$8,688 $5,862 $2,531 $2,379 $2,521 $230 $22,211 


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 March 31, 2023, 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$8,661 $5,576 $2,219 $1,837 $1,786 $64 $20,143 
Low ratio customers27 286 312 542 735 166 2,068 
Total finance receivables$8,688 $5,862 $2,531 $2,379 $2,521 $230 $22,211 


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 three and nine months ending March 31, 2023 and 2022:

Three months ended March 31,Three months ended March 31,
($ in thousands)20232022
Balance, beginning of period$864 $1,062 
Provision for expected losses— 225 
Write-offs— (138)
Balance, end of period$864 $1,149 


Nine months ended March 31,Nine months ended March 31,
($ in thousands)20232022
Balance, beginning of period$760 $1,109 
Provision for expected losses392 425 
Write-offs(288)(385)
Balance, end of period$864 $1,149 
Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows:
($ in thousands)
2023 (remaining 3 months)$2,690 
20247,570 
20255,965 
20264,546 
20272,754 
Thereafter793 
Total amounts to be collected24,318 
Less: interest(2,107)
Less: allowance for receivables(864)
Total finance receivables$21,347