LEASES

9 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

LEASES

Lessee Accounting

The Company has operating leases for office space, warehouses, and office equipment, including those obtained through the 32M acquisition in December 2022. At March 31, 2023, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Balance Sheet Classification	As of March 31, 2023		As of June 30, 2022
Assets:	Operating lease right-of-use assets	$	2,799	$	2,370
Liabilities:
Current	Accrued expenses	$	1,445	$	1,538
Long-term	Operating lease liabilities, non-current	2,641		2,366
Total lease liabilities		$	4,086	$	3,904

Components of lease cost are as follows:

($ in thousands)	Three months ended March 31, 2023	Three months ended March 31, 2022
Operating lease costs*	691	462

($ in thousands)	Nine months ended March 31, 2023	Nine months ended March 31, 2022
Operating lease costs*	1,778	1,347

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Nine months ended March 31, 2023		Nine months ended March 31, 2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,793	$	1,257
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	—	$	471

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases
Remainder of 2023	$	548
2024	1,449
2025	1,127
2026	1,048
2027	440
Thereafter	$	—
Total lease payments	$	4,612
Less: Imputed interest	(526)
Present value of lease liabilities	$	4,086

During the three months ended March 31, 2023, the Company extended an existing operating lease for an additional 70-months period. The lease extension will commence on October 1, 2023. As such, this was not included in the Operating lease right-of-use assets or liabilities on the Condensed Consolidated Balance Sheets for as of March 31, 2023.

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	March 31, 2023		June 30, 2022
Cost	$	28,182	25,242
Accumulated depreciation	(22,915)		(22,914)
Net	$	5,267	$	2,328

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of March 31, 2023 are disclosed within Note 6 - Finance Receivables.

LEASES

LEASES

Lessee Accounting

The Company has operating leases for office space, warehouses, and office equipment, including those obtained through the 32M acquisition in December 2022. At March 31, 2023, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Balance Sheet Classification	As of March 31, 2023		As of June 30, 2022
Assets:	Operating lease right-of-use assets	$	2,799	$	2,370
Liabilities:
Current	Accrued expenses	$	1,445	$	1,538
Long-term	Operating lease liabilities, non-current	2,641		2,366
Total lease liabilities		$	4,086	$	3,904

Components of lease cost are as follows:

($ in thousands)	Three months ended March 31, 2023	Three months ended March 31, 2022
Operating lease costs*	691	462

($ in thousands)	Nine months ended March 31, 2023	Nine months ended March 31, 2022
Operating lease costs*	1,778	1,347

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Nine months ended March 31, 2023		Nine months ended March 31, 2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,793	$	1,257
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	—	$	471

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases
Remainder of 2023	$	548
2024	1,449
2025	1,127
2026	1,048
2027	440
Thereafter	$	—
Total lease payments	$	4,612
Less: Imputed interest	(526)
Present value of lease liabilities	$	4,086

During the three months ended March 31, 2023, the Company extended an existing operating lease for an additional 70-months period. The lease extension will commence on October 1, 2023. As such, this was not included in the Operating lease right-of-use assets or liabilities on the Condensed Consolidated Balance Sheets for as of March 31, 2023.

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	March 31, 2023		June 30, 2022
Cost	$	28,182	25,242
Accumulated depreciation	(22,915)		(22,914)
Net	$	5,267	$	2,328

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of March 31, 2023 are disclosed within Note 6 - Finance Receivables.