LEASES

12 Months Ended

Jun. 30, 2023

Leases [Abstract]

LEASES

LEASES

Lessee accounting

We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases:

($ in thousands)	Balance Sheet Classification	As of June 30, 2023		As of June 30, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	2,575	$	2,370
Liabilities
Current	Accrued expenses	1,266		1,538
Long-term	Operating lease liabilities, non-current	2,504		2,366
Total lease liabilities		$	3,770	$	3,904

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2023		Year ended June 30, 2022		Year ended June 30, 2021
Operating lease costs*	$	2,490	$	1,923	$	2,079

* Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021.

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

($ in thousands)	Year ended June 30, 2023		Year ended June 30, 2022		Year ended June 30, 2021
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,522	$	1,737	$	1,635
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating lease	$	1,607	$	471	$	—

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2023		Year ended June 30, 2022
Weighted-average remaining lease term (years)
Operating leases	3.2		3.4
Weighted-average discount rate
Operating leases	7.5	%	6.8	%

Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows:

($ in thousands)	Operating Leases
2024	$	1,502
2025	1,181
2026	1,102
2027	462
2028	—
Total lease payments	$	4,247
Less: Imputed interest	(477)
Present value of lease liabilities	$	3,770

In connection with the acquisition of 32M, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months.

In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 70-months period. The lease extension commenced on July 1, 2023. In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease has a 133-months term and the anticipated lease commencement date is December 1, 2023 upon the expiration of the Company's current office lease. These two leases were not included in the Operating lease right-of-use assets or liabilities on the Consolidated Balance Sheets for as of June 30, 2023.

Lessor accounting

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

	As of June 30,
($ in thousands)	2023		2022
Cost	$	28,398	$	25,242
Accumulated depreciation	(23,221)		(22,914)
Net	$	5,177	$	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 June 30, 2023 are disclosed within Note 7, Finance Receivables.

LEASES

LEASES

Lessee accounting

We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases:

($ in thousands)	Balance Sheet Classification	As of June 30, 2023		As of June 30, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	2,575	$	2,370
Liabilities
Current	Accrued expenses	1,266		1,538
Long-term	Operating lease liabilities, non-current	2,504		2,366
Total lease liabilities		$	3,770	$	3,904

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2023		Year ended June 30, 2022		Year ended June 30, 2021
Operating lease costs*	$	2,490	$	1,923	$	2,079

* Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021.

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

($ in thousands)	Year ended June 30, 2023		Year ended June 30, 2022		Year ended June 30, 2021
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,522	$	1,737	$	1,635
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating lease	$	1,607	$	471	$	—

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2023		Year ended June 30, 2022
Weighted-average remaining lease term (years)
Operating leases	3.2		3.4
Weighted-average discount rate
Operating leases	7.5	%	6.8	%

Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows:

($ in thousands)	Operating Leases
2024	$	1,502
2025	1,181
2026	1,102
2027	462
2028	—
Total lease payments	$	4,247
Less: Imputed interest	(477)
Present value of lease liabilities	$	3,770

In connection with the acquisition of 32M, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months.

In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 70-months period. The lease extension commenced on July 1, 2023. In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease has a 133-months term and the anticipated lease commencement date is December 1, 2023 upon the expiration of the Company's current office lease. These two leases were not included in the Operating lease right-of-use assets or liabilities on the Consolidated Balance Sheets for as of June 30, 2023.

Lessor accounting

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

	As of June 30,
($ in thousands)	2023		2022
Cost	$	28,398	$	25,242
Accumulated depreciation	(23,221)		(22,914)
Net	$	5,177	$	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 June 30, 2023 are disclosed within Note 7, Finance Receivables.

LEASES

LEASES

Lessee accounting

We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases:

($ in thousands)	Balance Sheet Classification	As of June 30, 2023		As of June 30, 2022
Assets
Operating leases	Operating lease right-of-use assets	$	2,575	$	2,370
Liabilities
Current	Accrued expenses	1,266		1,538
Long-term	Operating lease liabilities, non-current	2,504		2,366
Total lease liabilities		$	3,770	$	3,904

Components of lease cost are as follows:

($ in thousands)	Year ended June 30, 2023		Year ended June 30, 2022		Year ended June 30, 2021
Operating lease costs*	$	2,490	$	1,923	$	2,079

* Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021.

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

($ in thousands)	Year ended June 30, 2023		Year ended June 30, 2022		Year ended June 30, 2021
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,522	$	1,737	$	1,635
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations
Operating lease	$	1,607	$	471	$	—

Weighted-average remaining lease term and discount rate for our leases are as follows:

	Year ended June 30, 2023		Year ended June 30, 2022
Weighted-average remaining lease term (years)
Operating leases	3.2		3.4
Weighted-average discount rate
Operating leases	7.5	%	6.8	%

Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows:

($ in thousands)	Operating Leases
2024	$	1,502
2025	1,181
2026	1,102
2027	462
2028	—
Total lease payments	$	4,247
Less: Imputed interest	(477)
Present value of lease liabilities	$	3,770

In connection with the acquisition of 32M, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months.

In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 70-months period. The lease extension commenced on July 1, 2023. In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease has a 133-months term and the anticipated lease commencement date is December 1, 2023 upon the expiration of the Company's current office lease. These two leases were not included in the Operating lease right-of-use assets or liabilities on the Consolidated Balance Sheets for as of June 30, 2023.

Lessor accounting

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

	As of June 30,
($ in thousands)	2023		2022
Cost	$	28,398	$	25,242
Accumulated depreciation	(23,221)		(22,914)
Net	$	5,177	$	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 June 30, 2023 are disclosed within Note 7, Finance Receivables.